23100

[SASKFARMER3]

Bucket this time the Liberals have the canadian gov so far in debt that their will be no write down

[AlbertaFarmer5]

"How did you go bankrupt? Two ways. Gradually then suddenly." Ernest Hemmingway

Asset prices 100% depend on the access of cheap credit. If central banks allow it to dry up then the economy implodes. Ever heard of a melt up? Where she stops nobody knows.

And the question I keep asking myself is why would central banks want to allow cheap credit to dry up, in whose interest would that be? As long as they can maintain any control, they will try to keep the party going, as has been proven time after time, no one wants to allow the next natural reset like they did in the 30's. My other question is what would cause them to lose control?

[farming101]

I am convinced that some of the land bought up for speculation was paid for with spare cash.
One farm of 8 quarters bought 4 or 5 years ago for 1.4+M apparently grew weeds this year.(Didn't see it for myself)
Another of 10 quarters is back on the market after less than 2 years of ownership. Marked up 20%. Don't think there will be a price cut any time soon.
Don't think a correction will change these speculator's objective. A crash might.

[bucket]

What has happened in the past is guys overpay on land ....fcc lends them the money and then gladly takes a write down on it.....then lends them more....


Grain prices are the same as the 70s and guys are paying 10x the price then.....not sure how it makes sense as an investment....

Problem is machinery is 20x the price....

I guess like that SNL skit they make money on volume. ....

[macdon02]

AF5 they can't sell the govt debt at lower rates. Risk on in bonds. So rates have to go up and there's a battle between public and private. Central banks HAVE TO raise rates because pension funds are bleeding to death. If pensions implode the faith in govt to provide into retirement is gone and again they can't sell the debt. Checkmate on perpetual deficits.

[farming101]

23800 might be in play before a pullback
The USDX I'm not so sure. Rangebound? I wouldn't be surprised to see it match the Sept 8 low

[farmaholic]

I am convinced that some of the land bought up for speculation was paid for with spare cash.
One farm of 8 quarters bought 4 or 5 years ago for 1.4+M apparently grew weeds this year.(Didn't see it for myself)
Another of 10 quarters is back on the market after less than 2 years of ownership. Marked up 20%. Don't think there will be a price cut any time soon.
Don't think a correction will change these speculator's objective. A crash might.

Marked up.20%?.....anyone biting?

[farming101]

I hear there have been inquiries but that's all

[biglentil]

And the question I keep asking myself is why would central banks want to allow cheap credit to dry up, in whose interest would that be? As long as they can maintain any control, they will try to keep the party going, as has been proven time after time, no one wants to allow the next natural reset like they did in the 30's. My other question is what would cause them to lose control?

There is no putting the cat back in the bag. All they can do is kick the can further down the road. History teaches us that at some point the fiat currency experiment ends badly. When that happens all bets are off. The catalyst that sets it off who knows. Seems the super computers and algorithms are doing a great job of throttling markets. Property prices are more difficult to keep a lid on.

How does one protect ones self? In all honesty I think a modest country life with a wide set of practical skills. May prove the most valuable.

[sumdumguy]

Just be careful who to get advice from.
The day after the US election last year a lot of experts were calling for a crash.....it was between 18,000 and 19,000 than.

I think that land is likely as good of an investment as anything.

Land is a high -maintenance investment. It took 27 years for the section of land we bought in 1980 to regain its value. The whole time we owned it, it wasn't worth 50 cents on the dollar and our cheap land subsidized it for most of those 27 years. As for finding good renters, all renters are not created equal. I know a guy who rents out quite a bit of land - you should ask him how many years he got figus mockum and see who is working fields and sloughs this fall because renter left a mess. Not the baggage some want to carry but who knows for sure, maybe some do.

A lot of guys suffered through the eighties, survived the nineties while fighting the wheat board tag-team, then waded through the early 2000's seeding every year with no chance of profit. Farming was not always like the last seven years or eight years. Just saying!