The Great Global Debt Unwind . . . .

[errolanderson]

From a decline in global property values, rising North American bankruptcies, a peak in consumer debt, to the start of the unwind of a $4.5 trillion Fed balance sheet, the great global debt unwind may finally be in-progress.

http://www.businessinsider.com/commercial-business-bankruptcies-2017-6

[farmaholic]

From a decline in global property values, rising North American bankruptcies, a peak in consumer debt, to the start of the unwind of a $4.5 trillion Fed balance sheet, the great global debt unwind may finally be in-progress.

http://www.businessinsider.com/commercial-business-bankruptcies-2017-6

"global property values", will this include Western Canadian farmland values?

[furrowtickler]

I don't think farmland values will take a hit yet .
But I would be very nervous if I had a $750,000 home that's mortgaged to the nines . I said it would start in Alberta and cascade accross the country . It' could happen sooner than later
One prime example was the price of new vehicles in 2007 ish . They were going through the roof just before the 2008 US crash ...... anyone price out a new truck lately ?????

[Rareearth]

Looking at this chart commodities are very cheap compared to equities. This would be good for Ag if the money flow comes back into commodities. Unfortunately it has to come out of the stock market and equities. Bad for the farmers who sold land or other investments ( pensions included)

[Rareearth]

Well that chart isn't very clear.
The top circles are stock market highs and the bottom circles are commodities index.

I for one hope the price of land stays high and goes higher, (the same for our commodities). Best case would be for stability.

[ajl]

Cheap debt has fueled all types off asset classes including stocks, bonds, commodities, and real estate. As soon as cheap debt is not available all asset classes decline together and cash is king. That being said the only one of those to have declined is commodities. Oil struggles to get above $50 and corn is now 3.50 to 4 vs $6-7 no long ago. All figures in US funds as there is no other currencies are used for serious transactions globally. There is talk of alternatives but so far none have credibility.

[errolanderson]

Cheap debt has fueled all types off asset classes including stocks, bonds, commodities, and real estate. As soon as cheap debt is not available all asset classes decline together and cash is king. That being said the only one of those to have declined is commodities. Oil struggles to get above $50 and corn is now 3.50 to 4 vs $6-7 no long ago. All figures in US funds as there is no other currencies are used for serious transactions globally. There is talk of alternatives but so far none have credibility.

Central bank manipulation is the only reason why U.S. stock markets are at historic highs. And the U.S. economy is slowing at the same time. Total imbalance in financials right now.

And according to the Conference Board of Canada, Alberta will lead Canada in economic growth next year. Go figure . . . .

[rockpile]

Nothing anyone can do but just sit back and wait for the smoke to clear and then assess the situation. Was bound to happen sooner or later so grin and bear it.

[nicolaas]

meh, this was all said in '08. Carry on.

[errolanderson]

Consumers appear tapped out. Here it comes . . . .

http://www.businessinsider.sg/credit-card-defaults-have-spiked-as-lending-standards-fall-2017-6/#EZA3hXBdABZo51d5.97

[biglentil]

Errol where would you put your money? Some like the sock drawer or a bank account but asset price inflation is eating it faster than flea beatles in canola.

[foragefarmer]

Biglentil

"Errol where would you put your money? Some like the sock drawer"

That is exactly where Errol has been putting his money based on what he has been posting on Agriville the past several years.

I have asked him on several occasions where he has been investing his money, but never get an answer. So how can you take anybody serious when he posts the same doom ans gloom over and over again. I said that I personally by dividend yielding blue chips and hold. But hear nothing from Errol's investment strategy.

He keeps saying the market is going to crash and he posts these links saying the same thing but yet from March 2009 till now the market has done exactly the opposite. So, if anybody's listened to what Errol has posted REGARDING the stock market you would have gained nothing during this bull run.

Yes, I realize that one day the market will have a down turn it always does and always will, but nobody knows when. But, I would rather follow the investment advise or example Warren Buffet sets than listen to somebody hiding behind a fictitious name on Agriville cutting and pasting links every second week.

[Ache4Acres]

I like the links Errol posts, helps remind me that this house of cards will come tumbling down sometime

I bet Errol has been putting his money in bitcoin and has made a 10 bagger in last few years

[stonepicker]

I appreciate errol's posts. He has an opinion worth reading.

[farmaholic]

Errol where would you put your money? Some like the sock drawer or a bank account but asset price inflation is eating it faster than flea beatles in canola.

...............Saskatchewan farmland, Bahahahaha hahaha haha ha