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Clarke Co, Iowa | The 70's were a time when everyone said they are not making any more land so you could not pay too much today because it would be worth more next year. Inflation made the new truck or tractor you bought last year worth more now than you paid for it. Then the fed raised interest rates above 20% to curb inflation. That worked and suddenly the farm you purchased three years ago was worth 1/3 what you paid for it. Lots of people had their net worth drop to zero or negative then their borrowing power ended and they were sold out. It was a time when farmers who had put up land they owned as collateral to buy more land and lost it all. For those that held on. It only took 20 years for the land purchased during the late 70's to be worth what they paid.
The stock market was no better its value drop to less than 1/2 at the same time. The biggest difference was that margin calls forced most people out before they lost everything. | |
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It's not all inflation
