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DougG 
Orange Level
Joined: 20 Sep 2009
Location: Mo
Points: 8256
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 Topic: Bank failures,, farm loans interesting talk radio
Posted: 15 Mar 2023 at 6:37pm |
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Was on the road tonight and listening to talk radio,, they were talking of bank failures and whats to come - Farm Crices of 2023; evevdently one analists sad the banks are losing money on big Ag loans- they are starting to call in loans- Farmer pays the difference; restructures at a higher interest rate then before; the deal changes and put pressure on the land owners ; 80.s again?? ; guess as long as the commedity prices hold up should be fine,, ???
Edited by DougG - 15 Mar 2023 at 7:16pm
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Unit3
Orange Level
Joined: 17 Oct 2009
Location: NC Iowa
Points: 5572
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Posted: 15 Mar 2023 at 10:53pm |
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Everything is doom and gloom on You Tube. Everyone has something different to say and everyone is an expert, everyone but me. Makes me wonder about the paper insurance policies we have been paying for, for years. Just remember, “The only thing we have to fear is fear itself”.
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2-8070FWA PS/8050PS/7080/7045PS/200/D15-II/2-WD45/WD/3-WC/UC/C
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DMiller
Orange Level Access
Joined: 14 Sep 2009
Location: Hermann, Mo
Points: 33219
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Posted: 16 Mar 2023 at 8:08am |
So long as being repaid farm loans have not changed as I am aware. The failures so far have been Investment Banks, those take funds from investors and invest massive sums into Tech Companies or developments. Some invest in Real Estate ventures, others into massive corporation financing. not so much Loans but Investments where earn dividends that are then paid at a lesser rate to their own shares holders that did not have the funds for those huge investment deals. SVB would make .2 to .7% on Billion Dollar investments after paying their own investors reasonable dividends at market rates. .2% on $10 billion is a chunk of change. When Tech flopped as META(Faceplant), Google, MSN and Twitter, then the returns failed, that in turn destroyed Investors values and left SVB sitting on bad paper. Insurance investments are pretty well defined as Guarantee Investments, where they earn continued growth from stable money. Thos companies did not and do not buy into the Techie BS.
Edited by DMiller - 16 Mar 2023 at 8:09am
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Tbone95
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Joined: 31 Aug 2012
Location: Michigan
Points: 12001
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Posted: 16 Mar 2023 at 8:26am |
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Just took out a new $20k note. Interest rate sucks by comparison, but approval was smooth sailing, no issues or discussion of troubles whatsoever.
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jaybmiller
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Joined: 12 Sep 2009
Location: Greensville,Ont
Points: 24399
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Posted: 20 Jul 2023 at 6:00am |
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SPAM???
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3 D-14s,A-C forklift, B-112
Kubota BX23S lil' TOOT( The Other Orange Tractor)
Never burn your bridges, unless you can walk on water
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Lars(wi)
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Joined: 14 Sep 2009
Location: Permian Basin
Points: 7768
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Posted: 20 Jul 2023 at 7:41am |
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It my understanding, the majority of banks that have gone ‘teats up’ in this latest rash of takeovers, had failed to adhere to ISO 2022 standards. That standard was a revision of previous standards relating to the percentage of ‘hard assets’ these lending institutions were required to have on hand. These institutions either couldn’t or wouldn’t meet the new standards, thus they were ‘taken over’.
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I tried to follow the science, but it was not there. I then followed the money, and that’s where I found the science.
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dr p
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Joined: 24 Feb 2019
Location: new york
Points: 1319
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Posted: 20 Jul 2023 at 8:57pm |
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Not sure about the second one but the California bank was not exactly the best managed bank and they invested in gov bonds thinking interest rates would stay low forever. My local bank is getting the crap beat out of it on share price. Seems to be well run and pays a good dividend. Tompkins trust company
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nella(Pa)
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Joined: 11 Sep 2009
Location: Allentown, Pa.
Points: 3114
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Posted: 21 Jul 2023 at 6:55am |
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For about the last 30 years quite a few of the banks in my area change names after being bought out. Some of them 2-3 times. Trying to figure out why this is happening.
Edited by nella(Pa) - 21 Jul 2023 at 8:38am
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jaybmiller
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Joined: 12 Sep 2009
Location: Greensville,Ont
Points: 24399
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Posted: 21 Jul 2023 at 8:23am |
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The new bank wouldn't be responsible for old bank debts ????
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3 D-14s,A-C forklift, B-112
Kubota BX23S lil' TOOT( The Other Orange Tractor)
Never burn your bridges, unless you can walk on water
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AshleePace
Bronze Level
Joined: 19 Jul 2023
Location: USA
Points: 1
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Posted: 21 Jul 2023 at 9:56am |
It kinda reminds me of the challenges faced in the 80s. Seeking advice from experts like Mortgage Broker in Weston-super-Mare sounds like a smart move. Financial questions can indeed be tricky, but these professionals can offer valuable insights to navigate through tough times. You mentioned commodity prices, and I totally agree; they could be a game-changer. If they stay stable or improve, it might bring some relief to the farming community. Let's hope for the best! It's crucial for farmers to stay informed, connect with support networks, and explore options to tackle these uncertainties.
Edited by AshleePace - 23 Jul 2023 at 7:22pm
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Ray54
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Joined: 22 Nov 2009
Location: Paso Robles, Ca
Points: 4683
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Posted: 21 Jul 2023 at 11:52am |
 nella(Pa) wrote:
For about the last 30 years quite a few of the banks in my area change names after being bought out. Some of them 2-3 times. Trying to figure out why this is happening.
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Banking laws were changed making it easier to start a new bank 30 to 40 years ago. Probably close to dozen started here. It took 20 to 30 people each having a $100,000 cash money for the start up. Then barrow just like the big banks from Federal Reserve. But like most things the little bit bigger ones start buying up smaller one. About 10 to 15 years ago laws changed again to make it harder for small banks, so buy outs increased.
One of the most successful of the small banks local had bought most of the other small banks. Then a bank out of southern California bought the last of the local small banks. So back to no local banks. As a kid we had Bank of America or Crocker Anglo ( Crocker from the transcontinental railroad building). Both very large.
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