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Honored Advisor
Posts: 11,091
Registered: ‎05-13-2010
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Re: Do guys go broke anymore

Those shaky loans from far away were part and parcel of the drug of greed that pulled our whole banking system to the brink.  If you bank with Farm Credit, you may recall its attempt to gret Congress to alter its system charter to allow it to get into the action of mortgages outside its described rural territory. 

They called the initiative "New Horizons," and our association pushed us to all sign postcards to send to our national legislators, to convince Congress to let them trade in this trash.  I was totally opposed to the idea, and said so out loud...have been shunned by the CEO ever since.  He simply cannot handle anyone questioning his business acumen. 

The fact that I turned out to be right in spades seems to have only made this worse.   I never said "I told you so," but we both know I bucked him hard on the subject.  Thank goodness Congress did, too.  One reason ag credit didn't freeze totally up in the past two years is that Farm Credit was not in the samed danger that most banks had gotten themselves into. 

I am sure the reason this landed this way was that commercial banks and insuracne companies did not want to split the pie into more, smaller pieces, so we ahve that same greed to thank for at least this small saving grace.   

Whatever the reason, we dodged a bullet in ag financing.