The Death of Inflation

[jazz]

Former PM Harper on covid and the economy.

Man are Canadians stupid to throw out an intelligent, well spoken adult with a MA in economics for a hairbrained blackface idiot man child.

https://twitter.com/inklessPW/status/1355921242939740163

Full video interview further down in the thread.

[Richard5]

[QUOTE=TOM4CWB;485390]errolanderson;

Something is missing from your 'bubble' 'lack of inflation' theory:

Housing, Real estate, farm land, farm inputs, grain prices, livestock, food prices, minimum wages, equipment cost, virtually all 'real assets' have increased significantly over the past 5 and 10 years.


IMO, the main reason all of the above has increased is because money seems to be very easy to obtain and interest rates are low. You never used to be able to finance inputs 20 years ago and now you really don't have to Although farming profits have been very strong for the best of the best, my accountant tells me some it is very common to have 13000 acre farms with 18 mill debt and worst case they have seen is farms larger than 20,000 acres have over 40 mill in mtg debt, lease all the equipment (which is just a different form of debt). These farms also have had significant losses on financial statements in 5 out of the last 7 years.

My question would be if farming has been good for the past while (and I feel it has), why such large debt? What don't they understand about the position they are in or are they driving down a road in a big snow storm. Buying new equipment every year doesn't make you any more money but it appears for some, this is a significant mental disease.

There will be a huge day of reckoning soon for some.

[Taiga]

Absolutely, look at this cluster-*** insolvency, banks are/were just handing money out with very little regard to profitability. I guess the shine wears off every OYF eventually.

https://www.bowragroup.com/kalcofarms

[helmsdale]

Absolutely, look at this cluster-*** insolvency, banks are/were just handing money out with very little regard to profitability. I guess the shine wears off every OYF eventually.

https://www.bowragroup.com/kalcofarms

Wow... Into BMO alone for ~16.5 Million...

I see they paid out Input Capital, and CCGA with a restructuring of this debt in 2018. Restructure initiated in 2018, and they as of late last year, owe more than they initially recieved. Nice...

[LEP]

[QUOTE=Richard5;485574]

errolanderson;

Something is missing from your 'bubble' 'lack of inflation' theory:

Housing, Real estate, farm land, farm inputs, grain prices, livestock, food prices, minimum wages, equipment cost, virtually all 'real assets' have increased significantly over the past 5 and 10 years.


IMO, the main reason all of the above has increased is because money seems to be very easy to obtain and interest rates are low. You never used to be able to finance inputs 20 years ago and now you really don't have to Although farming profits have been very strong for the best of the best, my accountant tells me some it is very common to have 13000 acre farms with 18 mill debt and worst case they have seen is farms larger than 20,000 acres have over 40 mill in mtg debt, lease all the equipment (which is just a different form of debt). These farms also have had significant losses on financial statements in 5 out of the last 7 years.

My question would be if farming has been good for the past while (and I feel it has), why such large debt? What don't they understand about the position they are in or are they driving down a road in a big snow storm. Buying new equipment every year doesn't make you any more money but it appears for some, this is a significant mental disease.

There will be a huge day of reckoning soon for some.

Hmm. I thought FCC and the banks are turning down farmers with equity and encouraging them to sell to BTO's? (Sarcasm)

[Guest]

Wow... Into BMO alone for ~16.5 Million...

I see they paid out Input Capital, and CCGA with a restructuring of this debt in 2018. Restructure initiated in 2018, and they as of late last year, owe more than they initially recieved. Nice...

they were outstanding young farmers winners though in 2013
really important fellas

[jazz]

they were outstanding young farmers winners though in 2013
really important fellas

The curse...

[Taiga]

You are only a BTO when you have over $230k balance owing on a credit card.

[Guest]

when you look around , as a farmer or as a landlord , i might add
and you ask yourself , "how in the hell are they doing it" ? well heres your answer
sometimes top dog , or top dollar aren't everything

[shtferbrains]

Commonly refered to as keeping it all up front.