Data revealed that current afflictions (e.g., hallucinations) are related to major life events in the past (i.e., psychiatric hospitalizations). Further, certain experiences prior to adulthood (e.g. drug use) predict these major life events (e.g. crime). Thus, the data support a general 'drift down' hypothesis as a useful explanation of homelessness for future theory and development. Some policy implications are given. (Author abstract)