Higgenbotham wrote:Reality Check wrote:Greenspan was obviously attacking the man for the purpose of discrediting him, not because Greenspan believed that no one could have predicted the crisis.
The myth that Greenspan and his like want to preserve is that the requisite knowledge only exists within the inner sanctums. We've written about this before somewhere and I'll try to find it.Reality Check wrote:How much money did he lose and over what period of time?
The impression I got from reading the details was that he lost about 50% over a period of 18 months to two years. It's been a few years since I read about it though.
Another thing I'd mention is that he's been buying farmland and gold. He may well be right in the long run, but I saw no indication he sold out at the peak last year.
Yes, there are people investing in farmland. However, farmland can be more complex then it appears, and it is not for everyone.
Farmland is not liquid, and is something one holds for a long haul and is not for someone who wants to make a quick buck. However it does provide an acceptable return and is generally considered a hedge against inflation.
It is important that one has patient money, and preferably purchases land with cash.
Generally an investor purchases land and leases it to sophisticated operators using a farm management company. Rents can be paid in cash, crop share, or some combination of the two.
Also it is very important that quality land be purchased,- meaning - productive soils, adequate seasonal moisture, proper drainage, flat land, proper land configuration, no land irregularities, ( ditches, water ways, etc ) and size. ( a decent size would be a 1/4 section, -- a square 1/2 mile on a side, this is not always easy to find).
Another important consideration is natural precipitation ( which is preferable ) irrigation can be problematic due to subsiding aquifers and surface water right issues.
This farmland lease arrangement can be very advantageous to a large operator, in that the farmer does not have to own all of the land farmed, allowing him to invest in sophisticate equipment thereby amortizing equipment costs over more acreage and reducing input costs.
An example of such equipment and the obvious need for quality land is illustrated by a 48 row corn planter with GPS guidance, computer controlled and an air conditioned cab.
http://www.youtube.com/watch?v=TtMsLIKv ... re=related
http://www.youtube.com/watch?v=eRpAavAL ... re=related