Lender's capital is locked for decades. Created by mortgage lending: money lent today cannot be lent again until repaid.
This is a need. Something a person cannot ignore. Non-negotiable, usually urgent, and the most reliable foundation for a business. It is felt by the lender, continuously, and rates 4 out of 5 for the pressure it exerts.
It is rooted in Scarce resources.
This friction did not arise on its own. It was created by Mortgage — a solution to an earlier problem that produced this one.
The market has answered it in 1 ways: Mortgage-backed securities
Those answers were not free. Between them they created 1 further frictions, which is where the next layer of industries comes from.
Its neighbourhood
Everything this entry connects to directly. Click any point to follow it.
The line back to a human being
3 hops from a person at a phase of life. The further a thing sits from the person, the more abstract it looks — and the more it tends to be mistaken for something that came from nowhere.
- FrictionLender's capital is locked for decades
- SolutionMortgage
- FrictionNeed a shared home before you can afford to own one
- Life phaseHousehold formation
- Rooted inScarce resources
- Rooted inShelter
Relieved by
Every one of these is a business, an institution or a habit built on this single pressure.