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kansasfarmer's blog

Watching things unravel.

It is stressfull to be an American these days.  The speed at which our economy plummets to the earth has been surprising and unnerving.  Each newscast brings news of another round of layoffs, each day brings another set of dire predictions. 

In farm country, where just 6 months ago there was all this bluster about marching into a brave new era where food production was going to be all important, we now look at our future with a great deal of anxiety.  Land prices have lost about 30% in our area, nearly overnight.  That first 30% I think we can absorb, because land went too high too fast, and I don't even think there was time for farmers to get that 30% up on their balance sheets.  Cash flows are tight too, because so many were counting on much higher grain and cattle prices.  There is no reason to think that prices for what we raise are headed up anytime soon, the falling price of oil keeps a lid on any biofuels rally in grain, dwindling incomes keep the demand for meat, especially beef, down.

Even the folks that work the oil fields that dot our eastern Kansas landscape are blue.  6 months ago, the sky was the limit for oil.  Their input costs have risen just like ours....now oil dives toward earth...what happened to the $200 per barrel predictions?? 

My grandparents outlooks on life were shaped by the Great Depression, with money they were conservative to a T.  They feared the stock market, now their children have seen their retirement funds evaporate in the stock market..hmmm, maybe Grandpa did know best?  Both my mother and Mrs. KFs mother have put their retirements on hold, as have many others, due to huge losses of their retirement funds. 

The worst part of all this??  A general feeling we are just beginning.  I don't think any of the regular folks believe this will all end in the 2nd quarter of 2009 as is predicted by our government...after all, they just decided the recession actually began in December of 2007.

Comments

 

flash jacques said:

KF,

I thought you Americans knew more than us about investing. One sensible USA rule I saw somewhere was don't invest more of your wealth in stocks than the proportion of of your life that remains (up to you to define life expectancy).

Therefore close to retirement most should be in cash, bonds etc.

I think you are right, it's only just the beginning, but one reason we are all farmers is because we are tough!

You didn't believe all that $200 nonsense did you? Goldmans  are now predicting $45, anyone listening? ... No

Bon Courage.

December 15, 2008 10:30 AM
 

kansasfarmer said:

One thing that ought to be clear to everyone right now Flash is that as a whole, we have not been very smart as a nation with our money.   This is a wreck, and it gets worse by the day.  

Mother KF was convinced from listening to "experts" that the only way she could keep up with the increasing cost of living was to keep all her money in a 401K.  She has lost half now.  It is a very sore subject with the entire family, because KF, brother KF, and Father KF have pleaded and begged with her for the last 10 years to do exactly what you said...and she has ignored us.  

If the Dow hits 10000 again, brother KF and I are going to tie our mother up and sit on her until she agrees to take the money and put it in the bank...we can't stand to listen to her moan for the rest of her life about all she lost in the market.

December 15, 2008 2:55 PM
 

burocrat basher said:

KF,

   We are reeling on a day to day basis from shock reports from Companies either putting off their workforce or running out of money and this snowball seems to be accelerating downhill.Folks with money are scared stiff to put it anywhere,people without money are frightened sick and people with borrowings are sweating. The best bet in the UK is to be a manufacturing Exporter,we have a low pound,low Interest rates and very little Manufacturing Industry,that may now change.

December 17, 2008 9:39 PM
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