Some one smarter than me explain the BTO!

[SASKFARMER3]

i will agree with you that farm debt numbers are huge and yes a interest rate increase of two to three percent would have a effect.

Not sure how it will all work out but like every thing in farming its always changing.

[farmaholic]

I'm no economist but how the hell can they increase interest rates...... it would financially destroy alot of people. Gov money policies created this, how are they going to unwind it? Do you blame the people when they were basically giving you money to use for almost free!!!!!!!!!!!!!!

[Hopalong]

Two big farmland price busts were depression of 1930's and interest rate driven one of 1980's.
Neighbor told me of bank manager coming to his farm in eighties trying to convince him to borrow to buy land.
People had become convinced that inflation would continue and would outrun interest rates.
Think thirties was a time of general deflation.

[Rareearth]

Why did interest rates drop?

Is it something to do with the economy and competativeness?

[sumdumguy]

Why did interest rates drop?

Is it something to do with the economy and competativeness?

A competition to the bottom.

[Rareearth]

My point is if they were still 15, 18 or what ever %, every one would have bailed and moved elsewhere as we would be a even more premium expensive place to live, (G7).

Now with low interest rates why would boy wonder want to lead the way higher? It just wouldn’t make sense or be smart.

[farmaholic]

My point is if they were still 15, 18 or what ever %, every one would have bailed and moved elsewhere as we would be a even more premium expensive place to live, (G7).

Now with low interest rates why would boy wonder want to lead the way higher? It just wouldn’t make sense or be smart.

..........politically?

[AlbertaFarmer5]

My point is if they were still 15, 18 or what ever %, every one would have bailed and moved elsewhere as we would be a even more premium expensive place to live, (G7).

Now with low interest rates why would boy wonder want to lead the way higher? It just wouldn’t make sense or be smart.

Interest rates are a balance between bankrupting the pension funds ( low rates) and bankrupting everyone else, including government( high interest rates) So guess which direction rates are going as long as we have some modicum of control? When they start going up, it means they have lost control/ investors have lost confidence, and the game is over anyways. There is no easy way out of a debt bubble, so it will be postponed as long as possible. Might as well ride the wave, the end result will be the same.

[farmaholic]

Interest rates are a balance between bankrupting the pension funds ( low rates) and bankrupting everyone else, including government( high interest rates) So guess which direction rates are going as long as we have some modicum of control? When they start going up, it means they have lost control/ investors have lost confidence, and the game is over anyways. There is no easy way out of a debt bubble, so it will be postponed as long as possible. Might as well ride the wave, the end result will be the same.

Then at least tighten credit while they continue to kick the can down the road. Maybe don't have to stiffle borrowing. ...but don't make it so easy, or lend so much....

Too many people probably have a lack of personal discipline!

[Rareearth]

Debt isn’t a bad thing. It’s actually required when it comes to business startups, innovation, and growth.

Moderation yes, like a bottle of whisky.