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wt510151
Senior Contributor

"Dark Horse Bubble"

"Examiners at the regional Fed banks and the Federal Deposit Insurance Corp. are scrutinizing the lending standards, concentration levels, and loan documentation and risk management practices at the country's 2,144 farm banks. Risks that could curb the frothy farmland prices include a punishing drought in some states and volatile global commodity markets that could plunge and strip away crop income."

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3 Replies
Jim Meade / Iowa City
Senior Advisor

Re: "Dark Horse Bubble"

It's not a bad idea that the Fed is watching, but some of this seems to be knee-jerk reaciton, like we've seen with FEMA, TSA and many other "sexy" programs.

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Kay/NC
Honored Advisor

Re: "Dark Horse Bubble"

I think there have very likely been questionable practices in many econmc sectors, including in farmland purchases and pricing. This is going to come back to bite the entire rural economy n the butt.
I am thinking that the Occupy Wall Street crowd has about got it right...20% of pur nation's worth was sucked out of us in the mortgage meltdown, from what I have rcently heard quoted...and not one prosecution has resulted out of it. The same bunch will not learn the error of its ways, since its ways were never punished. They just look for new victims....

Mike and I were working on our little country store building we bought last fall yeaterday afternoon, and the garbage can discussion came up. Each property with an electric service, except farm bans and shops, is subject to a $200 per year solid waste fee on the tax bill each year. Right now, we pay four of these, for " curbside" ( I call it " ditch bank") can collection once a week. I do to reduce oir payments by one $200 amoint, for the coming fiscal year, and perhaps get the fee prorated, when I complete buying out a co- owner, and remove the mobile home on tha parcel.

Still would leave us paying a huge corporation $600 a year. This is yet one more way that our poor population is being sucked dry for no good reason. Not.a huge amount of money, but when we and our daughter and SIL are being hit up for $1000 year for just our two households, it does pain a bit. multiply this over and over again for all services, then look at who gets what for everything...it will make you see that we are stuck in all sorts of schemes that make money for everyone but us.

I have said before: I hope I a,wrong, but think the eighties are going to look like a cakewalk when this all finishes falling out. I am afraid this new oversight is very possibly way too little, way too late.
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wt510151
Senior Contributor

Re: "Dark Horse Bubble"

Reason for knee-jerk reaction is quite simple. The powerful ones want something down, right now. So the government has to abide, or risk their jobs in the coming election. That's what happens when representation is on the auction block for the highest bidder.

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