In Perspective, Planet: Where The Street is home!

[Asher Kelman]

Some folk are drunk and on drugs or mentally ill. Others are down on misfortune!

But ending up on the streets is tragic and a sore sight lining more and more streets in Los Angeles!

Asher Kelman: “Encampments”!


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A large local “neighborhood” community of lean to’s and tent structures have self-organized in a parallel society to the major commerce institutions in the b.g.!

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Asher

 

[Asher Kelman]

Then others are not so organized. Often drunk or sick, they “hang out” and sleep in the open!

Asher Kelman: “Solo Homeless”​

Asher

 

[James Lemon]

Then others are not so organized. Often drunk or sick, they “hang out” and sleep in the open!

View attachment 2134

Asher Kelman: “Solo Homeless”​

Asher

Capitalism doesn't work so well when the cost of living and homes are high.

 

[Asher Kelman]

Capitalism doesn't work so well when the cost of living and homes are high.

No doubt, James, some are knocked off the conveyer belt of life as there is no safety net that richer folk with larger families can have.

The economy is doing very well if one has a job and is securely invested in the stock market or rental property.

But most folk live fromPay check to pay check. Moreover, when mental illness in its various manifestations strikes, folk get one the wrong side of the bank and then the police.

But the solo folk are more often really mentally fukked up!

Asher

 

[James Lemon]

No doubt, James, some are knocked off the conveyer belt of life as there is no safety net that richer folk with larger families can have.

The economy is doing very well if one has a job and is securely invested in the stock market or rental property.

But most folk live fromPay check to pay check. Moreover, when mental illness in its various manifestations strikes, folk get one the wrong side of the bank and then the police.

But the solo folk are more often really mentally fukked up!

Asher

Yes indeed .

A 2012 report by the Treatment Advocacy Center, a nonprofit organization that works to remove treatment barriers for people with mental illness, found the number of psychiatric beds decreased by 14 percent from 2005 to 2010. That year, there were 50,509 state psychiatric beds, meaning there were only 14 beds available per 100,000 people
"Many times individuals who really do require intensive psychiatric care find themselves homeless or more and more in prison," Sisti says. "Much of our mental health care now for individuals with serious mental illness has been shifted to correctional facilities. Read more ant the link below.

https://www.npr.org/2017/11/30/5674...atric-hospitals-led-to-a-mental-health-crisis

 

[Jerome Marot]

Capitalism doesn't work so well when the cost of living and homes are high.

The price of housing depends on supply and demand.

 

[Asher Kelman]

The price of housing depends on supply and demand.

New York seems to be ahead of most American Cities in providing homes. I read that in Norway, before social services, they provide homes.

Here a sizable percentage of homeless are also alcoholics and suffering from substance abuse too. The housing provided by religious and NGO as well as the Cities, don't tolerate drinking alcohol or drug possession. So the addicted may opt out of these shelters, by choice.

Still in Los Angeles there are tens of thousands homeless spilling out on sidewalks not only in poor rundown areas, as in the sparse cases in the past, but also now crowded outside Churches, businesses and shelters. Some shops have taken to placing planters outside their storefronts to discourage the homeless from setting up encampments!

It’s an epidemic of tragic humanity!

Asher

 

[James Lemon]

The price of housing depends on supply and demand.

The price of housing depends on supply and demand.

Numerous factors effect housing prices, interest rates being only one contributing factor,government policy,state of the economy,money laundering, just to mention a few. The market has been thin for some time but not much effect on the price. Consumer debt in the world is somewhere near 160 trillion dollars and total global debt = 244 trillion.

 

[Jerome Marot]

Numerous factors effect housing prices, interest rates being only one contributing factor,government policy,state of the economy,money laundering, just to mention a few. The market has been thin for some time but not much effect on the price.

You can have a nice house in the part of France my family comes from for as low as 20K€. Not the most modern, as it was probably built over a century ago, but with electricity, sanitation and even broadband access. Built out of local stones, should last for a while when the roof is maintained.

I am pretty sure there is a reason why housing in Paris or L.A. is considerably more expensive, yet people flock to these cities to sleep under tents.

Consumer debt in the world is somewhere near 160 trillion dollars and total global debt = 244 trillion.

We have 7 billions humans on this planet. So consumer debt is 23000$ per person and global debt 35000$? Note that I use the short scale for the word "trillion".

I would also like to include a picture about money, but it is far too large to display here. You will find it on the XKCD website here!

 

[Asher Kelman]

I don’t think the homeless are priced out of the purchased housing market. Most I believe were renting. But whereas investors in the stock market and upper income workers have done well in the past 20 years, the working, blue collar folk have not had wages go up to make up for rising cost of living, healthcare and education.

One family upset, and they cannot hold things together.

For example if the breadwinner is attested for being drunk and the officer feels disrespected other charges, like resisting arrest get added. He is poor and can’t get bail so to get out of jail he pleads guilty or “no contest” and he now has a record. Asxa consrquence he gets fired from his job!

Asher

 

[James Lemon]

You can have a nice house in the part of France my family comes from for as low as 20K€. Not the most modern, as it was probably built over a century ago, but with electricity, sanitation and even broadband access. Built out of local stones, should last for a while when the roof is maintained.

I am pretty sure there is a reason why housing in Paris or L.A. is considerably more expensive, yet people flock to these cities to sleep under tents.



We have 7 billions humans on this planet. So consumer debt is 23000$ per person and global debt 35000$? Note that I use the short scale for the word "trillion".

I would also like to include a picture about money, but it is far too large to display here. You will find it on the XKCD website here!

Thanks for the break-down Jerome! Although you might want to adjust your numbers? Considering that depending on ones estimate and the exact definitions used, more than one billion and perhaps as many as 2.5 billion people can be categorized as living in extreme poverty.
Essentially these people could not afford a down payment on half of a ham sandwich.



The World Bank places countries into three categories: high-income, middle- income and low income based on the countries GDP per capita. This is what the World Bank, U.N, and other international organizations use to summarize a countries current development.

The high income countries are the United States, Canada, western Europe, Japan, South Korea,New Zealand, Australia, and a few other parts of the world. This equates to about 1 billion of approximately 7.2 billion people about 15% of the worlds population .

 

[James Lemon]

I don’t think the homeless are priced out of the purchased housing market. Most I believe were renting. But whereas investors in the stock market and upper income workers have done well in the past 20 years, the working, blue collar folk have not had wages go up to make up for rising cost of living, healthcare and education.

One family up and they cannot hold things together.

For example if the breadwinner is attested for being drunk and the officer feels disrespected other charges, like resisting arrest get added. He is poor and can’t get bail so to get out of jail he pleads guilty or “no contest” and he now has a record. Asxa consrquence he gets fired from his job!

Asher

Asher

Thanks for the break-down Jerome! Although you might want to adjust your numbers? Considering that depending on ones estimate and the exact definitions used, more than one billion and perhaps as many as 2.5 billion people can be categorized as living in extreme poverty. Essentially these people could not afford a down payment on half of a ham sandwich.

The world bank places countries into three categories: high-income, middle- income and low income based on the countries GDP per capita. This is what the World Bank, U.N, and other international organizations use to summarize a countries current development.

The high income countries are the United States, Canada, western Europe, Japan, South Korea,New Zealand, Australia, and a few other parts of the world. This equates to about 1 billion of approximately 7.2 billion people about 15% of the worlds population .

 

[Jerome Marot]

Thanks for the break-down Jerome! Although you might want to adjust your numbers?

Someone certainly should adjust their numbers. While I could find an article estimating the global debt to be valued near $244 trillions, I could not find an estimate of $160 trillions. The same article estimates world household debt at $46 trillions.

The trick, however, is that this money has no real counterpart in the economy. That is the problem with debt: it is quite possible to create figures much larger than anything which can be repaid.

 

[Asher Kelman]

Someone certainly should adjust their numbers. While I could find an article estimating the global debt to be valued near $244 trillions, I could not find an estimate of $160 trillions. The same article estimates world household debt at $46 trillions.

The trick, however, is that this money has no real counterpart in the economy. That is the problem with debt: it is quite possible to create figures much larger than anything which can be repaid.

Folk,

What’s the relationship between such debt and rise in homelessness we see in modern otherwise seemingly thriving cities?

I don’t understand the dynamics, as knowing “debt” alone doesn’t immediately explain what we see on the streets.

Is it mainly such debt?

What is currently increasing the visible extent of folk on not only the backstreets in neglected neighborhoods, but also main high streets, in front of businesses and stores?

Do we know the extent to which the prevalence of mental health disorders causes this recent burst in homelessness?

Or perhaps, is there uniquely new breakdown of social safeguard nets to that would normally support lower socioeconomic level families?

Asher

 

[Asher Kelman]

Then is it the human problem that bothers us the most or is it merely that we now suddenly confronted with it in our normal everyday shopping and going out to enjoy a meal!

We do care more, for sure! It bothers us a lot. we are disgusted and uneasy!

But is it for their sake and suffering or that we are made uncomfortable in our privileged more affluent lives?

Asher

 

[James Lemon]

Someone certainly should adjust their numbers. While I could find an article estimating the global debt to be valued near $244 trillions, I could not find an estimate of $160 trillions. The same article estimates world household debt at $46 trillions.

The trick, however, is that this money has no real counterpart in the economy. That is the problem with debt: it is quite possible to create figures much larger than anything which can be repaid.

Debt traps, Public and Private see link below if interested.

 

[James Lemon]

Folk,

What’s the relationship between such debt and rise in homelessness we see in modern otherwise seemingly thriving cities?

I don’t understand the dynamics, as knowing “debt” alone doesn’t immediately explain what we see on the streets.

Is it mainly such debt?

What is currently increasing the visible extent of folk on not only the backstreets in neglected neighborhoods, but also main high streets, in front of businesses and stores?

Do we know the extent to which the prevalence of mental health disorders causes this recent burst in homelessness?

Or perhaps, is there uniquely new breakdown of social safeguard nets to that would normally support lower socioeconomic level families?

Asher

Causes of homelessness  Insufficient income and lack of affordable housing are the leading causes of homelessness: o In 2012, 10.3 million renters (approximately one in four) had “extremely low incomes” (ELI) as classified by HUD.35 In that same year, there were only 5.8 million rental units affordable to the more than 10 million people identified as ELI. 36 o Additionally, only 31 out of every 100 of these affordable units were actually available to people identified as ELI.37  After paying their rent and utilities, 75% of ELI households end up with less than half of their income left to pay for necessities such as food, medicine, transportation, or childcare.38  The foreclosure crisis also played, and continues to play, a significant role in homelessness: o In 2008, state and local homeless groups reported a 61% rise in homelessness since the foreclosure crisis began.39 o Approximately 40% of families facing eviction due to foreclosure are renters; the problem may continue to worsen as renters represent a rising segment of the U.S. population.40  For women in particular, domestic violence is a leading cause of homelessness.41  According to the most recent annual survey by the U.S. Conference of Mayors, major cities across the country report that top causes of homelessness among families were: (1) lack of affordable housing, (2) unemployment, (3) poverty, and (4) low wages, in that order.42 The same report found that the top four causes of homelessness among unaccompanied individuals were (1) lack of affordable housing, (2) unemployment, (3) poverty, (4) mental illness and the lack of needed services, and (5) substance abuse and the lack of needed services.4

https://nlchp.org/wp-content/uploads/2018/10/Homeless_Stats_Fact_Sheet.pdf

 

[Jerome Marot]

Debt traps, Public and Private see link below if interested.

This is a 1h30' video produced by the "Institute for New Economic Thinking". Maybe it is just me, but I am always suspicious about organisations with overly attractive names and opaque finances. Who is paying to produce that 1h30' program?

Causes of homelessness  Insufficient income and lack of affordable housing are the leading causes of homelessness

That is a bit like saying that not living long enough is a leading cause of death. Besides, there is plenty of affordable housing, just not in the cities which attract these people.

 

[Jerome Marot]

Or perhaps, is there uniquely new breakdown of social safeguard nets to that would normally support lower socioeconomic level families?

There is a correlation, yes. For example: when the mentally ill are in hospital, they are not on the streets.

None of this is new, BTW. Europe in the lat XIX century saw considerable inequalities and, consequently, social programs to feed, shelter and keep the poor employed. Considerable social unrest at times, too.

 

[James Lemon]

This is a 1h30' video produced by the "Institute for New Economic Thinking". Maybe it is just me, but I am always suspicious about organisations with overly attractive names and opaque finances. Who is paying to produce that 1h30' program?



That is a bit like saying that not living long enough is a leading cause of death. Besides, there is plenty of affordable housing, just not in the cities which attract these people.

Here in Canada they could all move to Nunavut or maybe to your neighborhood, Asher could pay for there travel expenses. A lack of affordable housing is a huge problem in many communities in Canada and the U.S it not just a big city problem.

 

[Asher Kelman]

The Inuit natives would tell them stories of monsters and evil bears coming in from the snowy wilds and the honeleaa would be gone on the next train!

Asher

 

[James Lemon]

In the ten years up to the start of the financial crisis, house prices tripled. Many people think this is because there were not enough houses around, but that is only part of the picture. A major cause of the rise was that banks have the ability to create money every time they make a loan. During the period in question the amount of money banks created through mortgage lending more than quadrupled! This lending was a major driver of the massive increase in house prices.

House prices rise much faster than wages, which means that houses become less and less affordable. Anyone who didn’t already own a house before the bubble started growing ends up giving up more and more of their salary simply to pay for a place to live. And it’s not just house buyers who are affected: pretty soon rents go up too, including in social housing.
This increase in prices led to a massive increase in the amount of money that first time buyers spent on mortgage repayments. For example, while in 1996 the amount of take home salary that a first time buyer would spend on their mortgage was 17.5%, by 2008 this had risen to 49.3%. In London the figures are even more shocking, rising from 22.2% of take home pay spent on their mortgage in 1997 to 66.6% in 2008.1



https://positivemoney.org/issues/house-prices/

 

[Asher Kelman]

Really interesting and challenging statement. Now I have to read more at the link you gave us!

Asher

 

[Jerome Marot]

Indeed the price of houses increased massively in the past 10 years. In Munich, where I live, it doubled. The consequence is that anyone who owns real estate is increasing their worth considerably more by simply having a house than by working. Salaries have not followed the curve.

But the price of houses is not increasing everywhere. There are vast areas where the price of houses did not increase or even went down. Of course, there is some kind of snowball effect, as investors wants to buy real estate where prices increase by 10% a year.

At the same time, the population of these cities increase. People, especially the poorer segments of the country, flock to these city because this is where the money is. Basically the two (housing prices and migration) are correlated even if the two compete for the same insufficient housing.

The same phenomenon also exists in poorer countries: poor people flock from the countryside to live in favelas. This is noted by the United Nations.

It goes without saying that none of this can continue for ever.

 

[James Lemon]

Indeed the price of houses increased massively in the past 10 years. In Munich, where I live, it doubled. The consequence is that anyone who owns real estate is increasing their worth considerably more by simply having a house than by working. Salaries have not followed the curve.

But the price of houses is not increasing everywhere. There are vast areas where the price of houses did not increase or even went down. Of course, there is some kind of snowball effect, as investors wants to buy real estate where prices increase by 10% a year.

At the same time, the population of these cities increase. People, especially the poorer segments of the country, flock to these city because this is where the money is. Basically the two (housing prices and migration) are correlated even if the two compete for the same insufficient housing.

The same phenomenon also exists in poorer countries: poor people flock from the countryside to live in favelas. This is noted by the United Nations.

It goes without saying that none of this can continue for ever.

As previously noted in the video regarding private debt and the increase in mortgages over the last 50 years is worth trillions of dollars. Lending rules were much more stringent way back when service men were getting home from the second world war. Government policy has made it easier for people to obtain mortgages with different incentives such as 5% down payments with insurance guarantees from the government that were originally for war vets to buy homes. These programs are still in place today here in Canada. We now have things like reverse mortgages and second mortgages. This allow folks to use their homes has piggy banks based on equity and many get further into financial trouble with these instruments.

Many of our banks are essentially are propped up by the tax payer because the federal government would be on the hook for the defaults on high ratio mortgages. If you go back to the early 90s during the dot com bubble era, huge dollars left the stock market and went into real estate instead. Money laundering here in Canada through casinos into real estate and fake collateral is another big problem.

People used to buy homes for shelter and it was kind of a voluntary enforced savings plan. Now it is a big bubble and your average Joe and Mary public do not have any idea of the huge amount of exposure that banks have in a one asset class. The average home in Canada is about $480,000.00 an amortized loan over 25 years adds up to over a million dollars not to mention the property tax or maintenance. The amount of resources one would use to pay off such a loan can't be good for the environment either. In my opinion it is just one big diabolical malinvestment. Any bond investors want to buy some mortgage backed securities?

 

[Jerome Marot]

And what solution do you suggest, James?

 

[Asher Kelman]

Isn’t this why real value of money is said to about halve every 7 years?

No total money is lost, just the balloon has a lot of air. The amount of plastic in the ballon is pretty static. Of course real work and real raw material can generate more plastic as always.

“Air” just increases apparent status!

Asher

 

[James Lemon]

And what solution do you suggest, James?

If they had homes they would no longer be homeless: or is that too simple? That is the first step Finland took in solving their homeless problem. Have a look at how they approached the problem at the link below.

https://www.weforum.org/agenda/2018/02/how-finland-solved-homelessness/

 

[Asher Kelman]

If they had homes they would no longer be homeless: or is that too simple? That is the first step Finland took in solving their homeless problem. Have a look at how they approached the problem at the link below.

https://www.weforum.org/agenda/2018/02/how-finland-solved-homelessness/

I read that some time ago. They focus first on the homelessness THEN on the psychosocial and economic issues.

How many are mentally sick or on drugs or alcoholic so they cannot love in a home without help?

Asher

 

[Jerome Marot]

If they had homes they would no longer be homeless: or is that too simple? That is the first step Finland took in solving their homeless problem. Have a look at how they approached the problem at the link below.

https://www.weforum.org/agenda/2018/02/how-finland-solved-homelessness/

Pardon my irony, but I thought you advocated the free market and less government.

And it may indeed be a bit too simple. Social housing used to be in large quantities in France, but slowly degenerated into areas where nobody wanted to live.