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Advisor
Posts: 8,161
Registered: ‎02-06-2014

Re: Go-Go Farmers Go Bye Bye

BTW, I keep hearing lectures on personal responsibility.

 

The guy who borrowed the money to bid the rent up didn;t have a gun to his head. And he raised the costs (or reduced the acreage) of someone who may have been acting more reponsibly.

 

So as to the best policy response to a government sponsored bubble is not to try to save everybody.

 

BTW further, it has been lonely but I've always regarded the '98 Clinton/Gingrich doubledown reverse from F2F as a dangerous precedent of moral hazard. There was no longer a systemic crisis but it sent the message that you need to keep pedal to the metal because Uncle SugarDaddy always has your back.

Honored Advisor
Posts: 7,125
Registered: ‎07-18-2011
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Re: Go-Go Farmers Go Bye Bye

agree  government support always has bad side affects.

 

 

I have always thought rent "auctions" were a sign of a serious disconnect from reality...

 

And a sign of the bubble we create...

Esteemed Advisor
Posts: 2,335
Registered: ‎04-29-2011

Re: Go-Go Farmers Go Bye Bye

Cycles  happen in agriculture.  This has happened before and will happen again.  You can be part of the problem or part of the solution.  The only thing you can control is how YOU repsond.  You need to worry about yourself and your operation........an no one else.