thekcirp - 12/13/2012 06:12

I would add to Tommy's good points that:


1) Banks can stop the cheap variable rates much faster than they encouraged them.


2) With the price of land, machinery, and grain today, alot of  banks and their borrowers are flirting with the "net worth" deal all over again. 


3) Back at that time the price of grain, that generated the payments, had as good of chance doubling as it did being cut in half. Do you think corn has a better chance of going to $15 today or $3.75? How would that $3.75 look after you paid $12,000/acre for an 80 and financed half of it? What if you had 160 next to it paid for and now you owe $2,000/acre on the whole 240 acres? With today's input prices and $3.75 corn could you gulp it down? Mite make buying water at the local restaurant, instead of sodi pop, a little easier to explain?