Iowa | pknoeber - 11/16/2012 20:58
Yep. That's the way every bubble works. Ratchets up for a while and then there's a mania, then it falls off the cliff. Human nature. Happens in everything and repeats itself about every generation as the next generation is sure "this time's different" and then gets to learn the lessons all over again.
When I saw a farm bring $3600 "the last time", ( later it sold again for $1300) I heard the same drivel: "they aren't making it anymore", "the world's population is growing", yada, yada, yada. I was in an economics class at Iowa State a few years before that when Dr. Michael Boehlje showed us on the blackboard how you could borrow 17% money and get filthy rich because land was appreciating at over 20% annually. I have always felt he did more harm to iowa's farmers than any other individual ever has. He slithered out of Iowa and resurrected his career, but he should be given ZERO respect by all... Never any remorse for the pain he inflicted..... And he became an "expert". Wow......
Who knows where this is headed? No one! Will some win big and some lose big, and will it be a matter of luck in many cases? Sure.
Total, 100% after-tax CASH right now or you'd better sit on the sidelines for a spell. |
Can anything stop this land market???
