Expectations #1

[cottonpicken]

Oh we are talking an actual scenario my neuronary snapshot seen a metaphor for over extended farmers that might go broke silly me

Everyone with a heartbeat knows the answer

[parsley]

"Everyone with a heartbeat knows the answer."

Is that so?

[cottonpicken]

Ass.ume so

[parsley]

If everyone with a heartbeat knows the answer, then the kid should pay off the loan. Not owe. Not run away from his debt. No default. Isn't there a principle at work here? Honor? Reliability? Dependability? Take your pick.

*****$125 bike is sterling advice.... don't buy more than you can afford

**** Make him work and save up front is good advice.

If it's good for the kid.....isn't it also good for the adult?

Should farmers do the same?

Is that where farmers are heading, though? If not, why?

[bucket]

I understand where you are with this parsley, really I do.

Here is the big BUTs to what you have said.

1. Can the boy still do his chores in the rain and get paid? yes.

1a. Can the boy ride and crash his bike in the rain? yes

2.Can the farmer still plant the crop and make his payments in the rain? Most likely no.

3. Did the farmer, when he was borrowing money, have a plan to show the lender? more than likely yes.

4. Did the farmer and the lender have a contingency plan that said IF he would be down for the entire month of may because it was too wet to seed? Probably not because historical data says that would not happen.

5. Should the farmer default? no BUT 2,3 and 4 should have an effect on the decisions the lender makes - right?

6. If the lender to the boy knew he was going to crash the bike - should the lender lent the money?

Just thinking - does a person look at the best outcome or the worst. I would like to think most look for the best outcome, keeping in mind what could be the worst BUT never thinking of a disaster.

And I would call some of what is happening in Western canada a disaster.

[grefer]

If we are taliking about teaching a lifes' lesson ,is it not a two way street?Did the lender have a general security agreement or some other legally binding agreement?Did the lender insist insurance be taken out in the event the asset was destroyed or stollen.If the lender didn't do their homework and forsee some of the possible outcomes can the minor be held responsible?

[bgmb]

Here's a question for you Parsley,

If a sh!t storm comes through and destroys all the bikes for 100s of miles around will the gov come up with a bail out plan?

And if most of the boys owe money on their worthless bikes so they are all in the same boat will they really care about honor or reputation?

[parsley]

Lending money to farmers isn't exactly at the top of any bank's list of ToDo's; hence, the birth of for example, FCC.

bucket you pose: "If the lender to the boy knew he was going to crash the bike - should the lender lent the money? "

Transpose it:

If the banker to the farmer knew he was going to default the loan - should the banker lent the money?

Do you suppose a major B of M shareholder might ask that same question?

What happens when money gets scarce? And interest rates rise?

And it will.
And they will.

Good faith will become an integral part of the ability to get a loan. imho Pars

[parsley]

Don't get lawyer-cute, gregpet.

The concept is basic and you're as bright as Prairie boys come.

If things go to hell in a handbasket...ie interest rates go skyhigh by this fall, and a farmer is losing his profit to unintended interest rates (conventionsl wisdom presently says they won't), is it good business for the farmer to remain committed to paying his debt?

Or does he dump his debts on someone else?

[parsley]

bgmb,

Let's put it this way, using some of your words:

'If a shit storm comes through and destroys all the bikes for 100s of miles around, will you be content to cut and run and let foreign buyers own the family farm spoils for a song and a loonie?'

Or will the fam community hunker down, 'head down ass up', and work through the hard times?

Land has more value than some may view it to have. Interesting concept isn't it? It is being discussed.

Farm debt is up over 250%. Pars