The housing boom, ecconomy going good, so sup-prime became all the rage. Cheap adjustable rate morgage became real popular because the ecconomy was going so well that the adjustable became dirt cheap. Ecconomy doing well, so can always pay off a morgage, get as big as you can possibly afford, maybe a little bigger even, no prob.
The moragages were all bundled together & resold as big blocks to other firms.
Now the ecconomy is pretty good, not great, so rates go up, a few less raises, & it all goes to heck. Folks can't pay thier bills, the rates go up a notch, and everyone needs to sell.
Drives the market down, so they owe more than it is worth because they only owned it 2 years.
So, the govt will need to come in & bail out the morgage holders & those that can't pay their bills.
The ecconomy is now worse because of all the mess, so those big firms that invested wisely & carefully & those of us who pay our bills & don't go in too deep will suffer from those effects - and no govt help from us - actually we are the govt help paying that bill.
Like always. Same song, every 20 years or so.
To the original question, at this point it should not affect farm types so much. It is mostly all very similar tract housing, which coulds all be bundled together as same type of loan. Be glad if you have a farm & not that type of housing & loan. The farm stuff should only get dragged down a little, not so bad.
Not much adjustable loans on farm land - different catigory, could not be bundled into the big loan sales between big firms. Everyone got too complacient with those, let it build up into the problem it is. Everyone could see it coming, but no one could get off the wheel - have to play it out to the end & then take the govt handouts. How business is done.
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Today's Featured Article - Restoration Story: 1929 McCormick-Deering 10-20 - by Randal Simmon. On July 4th 1998 my dad and I was sitting on the front porch when he said that he was going to sell his two 10-20's to a junk man. He said that the junk man was going to give him $500 for both of them but he hadn't received the money for them yet. So I went into the house and wrote him a check for $500 and bought them myself and said now they are mine. He had bought them about five years before thinking that he was going to restore them himself. After five years sitting in the barn, he changed h
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