DEFLATION: Comin-in strong

[errolanderson]

Asset values are about to get a whole lot cheaper. The central bank induced debt crisis is now breaking inflation like a twig. Equities, cryptos, commodities, retail, real estate now under heavy pressure. Central bankers and markets may not know what just hit them.

Human emotion cycle of greed, hope, fear, panic and sell is now in fast motion.

Keynes economics at-its-finest . . . .

[TOM4CWB]

Nov22 Canola now $972… wow

[jazz]

Thats not deflation errol, thats liquidity rushing out of one asset class and into another, probably into US treasuries.

[errolanderson]

Thats not deflation errol, thats liquidity rushing out of one asset class and into another, probably into US treasuries.

Jazz, this is money going PPPFFFFF!

[bucket]

So what happens to people that paid the high for land or a house and the asset is now 30% below its purchase price.

[Taiga]

Those people lose a lot of money.

[bucket]

Those people lose a lot of money.

Do they ? Or do they sit in the back corner office renegotiating their loan?

The people lending the money are new to this, we are talking about second generation shysters, they know the path forward because they have done it before.

[jazz]

Do they ? Or do they sit in the back corner office renegotiating their loan?

The bank doesnt want the properties, so its refi out 30 yrs again, even with higher interest rates.

The ones that used cerb money for home downpayments are probably fcked. Buying non productive assets into a multi decade speculative bubble. Wow, this takes the cake.

How come dumbass farmers could see this coming a mile away, yet our educated class got blindsided by it. First thing after covid hit, I locked every loan I had down for 5 yrs at 2.5% interest rates. Those same loans woould be 4.7% today.

Man we have some stupid people walking the earth.

[SASKFARMER]

Not this time the property will be liquidated and those who bought will have to look else where for cash to buy or will loose. Banks don’t want property and you always can find a buyer.

Now it might be investors taking it all now but the farmers who bought at the top won’t be buying.

[bucket]

I will put money on ,( not alot because I have very little to wager), some of these new young BTOs get a special deal. And pay quite a bit less than they originally bid for the land.

[Sheepwheat]

How come dumbass farmers could see this coming a mile away, yet our educated class got blindsided by it.

Some maybe. But in terms of land, I think 90% of farmers, including on here, seemed to think land has no where to go but up.

When commodities take a beating here, the “correction” will begin in farm country. Too many guys have made far too many assumptions about the future.

Reminds me of another time. When I was a wee lad. But this time it’s millions and millions of dollars, not pocket change as it was then.

[helmsdale]

I will put money on ,( not alot because I have very little to wager), some of these new young BTOs get a special deal. And pay quite a bit less than they originally bid for the land.

When the majority of the scheme revolves around ever increasing equity, a devaluation of their primary asset doesnt provide solvency.

The second part of the scheme was that age old idea of "spreading fixed costs over MORE acres". Ok, so you used to net $10/ac...
now you're losing $10/ac... Eventually deere is goings to want their machinery back, leasing companies come for the grain storage, and nobody will extend op loans for fertilizer, chemical, and seed.

You can spread losses over all the acres you want, but they're still losses.

[jazz]

Some maybe. .

At the very least, land has some productive value even if you overpay for. What return does a home provide. Canadas housing market dwarfs our farmland market. Pain will be there first.

Hell local Super BTO bought $10m worth this spring.

Now is not the time for expansion, its time for debt reduction.

[fjlip]

The hundreds of $ million combines, drills and tractors? Deep discounts?
maybe refuse the unit, eat the deposit, if any, I hear Pattison never took deposits....

Wonder if the message gets to auctions?

[furrowtickler]

When the majority of the scheme revolves around ever increasing equity, a devaluation of their primary asset doesnt provide solvency.

The second part of the scheme was that age old idea of "spreading fixed costs over MORE acres". Ok, so you used to net $10/ac...
now you're losing $10/ac... Eventually deere is goings to want their machinery back, leasing companies come for the grain storage, and nobody will extend op loans for fertilizer, chemical, and seed.

You can spread losses over all the acres you want, but they're still losses.

That started happening here last few years with very adverse weather and crop conditions
God forbid this crop don’t come off this year
Will be a wipe out for some