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Midwest | I don't think so. The commodity crash of the early 1920's and the following agriculture depression was based on excessive profits during WW1 and farmers using short term profits to leverage their business. The export markets were further hampered by a tariff system which worked against agriculture.. The stock crash of 29 fueled by margin trading and lack of regulated trading was a separate event even though some of the reasons are the same. Yep Ag is going to have a washout for the next several years. Probably for the same reasons. The stock market does not have the same leverage problems. Its the government that has the leverage problem with the unregulated printing press's. Our bigger risk is the financial management of the federal government with its crazy spending habits and massive entitlement programs. | |
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Are commodity markets foreshadowing a crash?
