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The trap has been set.
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Norstman
Posted 11/7/2015 22:11 (#4883592 - in reply to #4883561)
Subject: RE: The trap has been set.


zmracing - 11/7/2015 21:54

I see doubling 2 as the same thing as doubling 9. If I currently am paying $300.00 an acre in interest per year and the rate double I am then paying $600.00 an acre per year in interest.  If I am paying 2% interest on $15,000 an acre land and interest doubles it is the same as if I was paying 9% interest on $3,300.00 an acre land and the interest doubles. $300.00 to $600.00 is the same result no matter where you started.


first off no one is paying 2% interest on 15000 dollar ground. Not a bank around that would loan that on total owned acres. I believe thats the difference between then and now. Banks didnt allow guys to go hog wild buying land. FCS had a rule here(IA/NE) that even in 2012 they wouldnt exceed 5000 acre loaned amount with most well below that level. Was it that way in the eighties?I don't believe so. Besides that the majority of loans are locked rates. Again a major difference from the eighties. I understand the point you are making but in the grand scheme it really dosent apply.

Edited by Norstman 11/8/2015 07:12
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