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BA Deere
Honored Advisor

Re: RISK, or the loss of

Hey Kay, that ACA is a can of worms.  Here`s what I posted about that guy on the infamous Forum page.

 

http://community.agriculture.com/t5/Ag-Forum/Go-ahead-Republicans-repeal-the-ACA/m-p/576726#M151772 ...

 

 

See, he himself doesn`t have health insurance but his son gets it through a state of Iowa plan.  Now he told that to his accountant, that basically said "don`t worry about it" (as long as the kid has insurance) and just checked the box, so no "penalties" or anything, his health insurance cost is zero.  Hey more power to him, but I`m sure if that`s all there is to it just putting a check in a box.  i haven`t seen a 1040 form in years, my accountant does that, but if it`s all about checking the correct boxes there`s a few going under the radar.

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BA Deere
Honored Advisor

Re: RISK, or the loss of

I can`t think of why interest rates should go up as long as the "dollar" is allegedly strong, when it finally does get weak, rates might have to go up to attract foreign investors to buy our debt.   But even then, rates shouldn`t have to go up, the fed could just print the money to "buy our own debt"...Whadda country!  Smiley Very Happy    

 

A raise in interest rates with our $18 Trillion national debt...i don`t care if John Phipps doesn`t lose sleep over it .  That doesn`t mean that rates couldn`t go up on the individual borrower, but through usual funny business the government would still have a sweetheart deal on interest rates for their debt.

 

Here`s John Phipps` Polly Anna view of the national debt...2nd story down.

 

http://www.agweb.com/blog/US_Farm_Report_Mailbag_198/ 

 

 

That idea of "paying off debt with cheaper dollars" is what got farmers in trouble the last time. Having no debt is always a good idea, and if one has a moderate amount it might be prudent to briskly walk towards the exit doors.  However with farming we don`t turn on a dime, it might already be too late, once you can see the iceberg, it`s often too late to right the ship.

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Kay/NC
Honored Advisor

Re: RISK, or the loss of

Our CPA marked us in that box, I feel certain. You would think someone somewhere is checking. Since you sign the 1040, not having insurance you claim to have, especially since the ACA has been construed as a tax by the Supremes, woukd be a pretty easy form of ax fraud to prove....
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Kay/NC
Honored Advisor

Re: RISK, or the loss of

It is that $80 bazillion in UNFUNDED liabilities that has the Fed so far upside-down. if I were the Russians/Chinese, I would dump us, too.
OKdon
Senior Contributor

Re: RISK, or the loss of

Take the same message and relate back to the 1980's when oppressive double digit interest rates did that to farmer borrowers not only damaging cash flow but devaluing farm assets decollateralized the operating loans and worsened the possibility of positive cash flows. As I recall you deemed most of those folks as cheaters or dead beats.  Don't you feel a little bit of empathy for those folks you so emphatically misjudged.

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BA Deere
Honored Advisor

Re: RISK, or the loss of

No Don, I need to correct you.  I empathize with those that went through tough times in the 80`s, if they took their medicine. Some saw it was "hopeless" and told the banker that 18% interest wasn`t going to work and had a farm sale in 1984..that was responsible by not dragging down local businesses with them.

 

On the otherhand you had the deadbeats that lied on their inventories, doubled down on their borrowing as times got worse, run a tab at the elevator, feed store, even the local grocery store.  They dug their hole deeper, then in 1987 the taxpayers and banks wrote-off their debt, to the tune of $900,000 in some cases.  $900,000 was a hell of alot of money back in 1987, you could`ve bought 500 acres back then!  I`m sorry if I don`t feel sorry for someone like that who left local distruction in their wake and came out smelling like a rose.  Some of the biggest shots today that wouldn`t amount to a damned were it not for their greed and lack care of all those that were destroyed.  I think that is the definition of a narcissistic psychopath.  

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OKdon
Senior Contributor

Re: RISK, or the loss of

I've had a variable rate on a farm mortgage for ten years or more. The variable rate has been 2.5% for a number of years. Could have paid it off long ago but kept the mortgage open in case I wanted a quick sizable loan for a significant purchase.

 

Such as an upgrade in the family home might require a sizable advance on the loan. Yes they have oked the advance should I need it.

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OKdon
Senior Contributor

Re: RISK, or the loss of

I really think you need delete your personal hard drive. It has been corrupted and your memory is all effed up? You need to clean the drive and restart and hopefully you will no longer think the worst of everybody.

 

You act like people that were forced into bankruptsy had a choice. If a lending institution has a lein on all your assets there is no way you will be able to pay off creditors if they deny you access to capital. You can't pay the feed store, the elevator, the hardware store, your grocery store, your fuel supplier if you can't sell assets aka grain and lifestock to repay those bills. If the bank has it all secured they can deny you any access to capital. And that's a fact jack!

 

 

 

 

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k-289
Senior Advisor

Re: RISK, or the loss of

Don  - Sometimes it's just a personallity thing - having an irrational exuberant mannerism make have a long term consiquence ---

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