New Tractor Sales Are Declining

[Cahaba Valley Farm]

Ah yes. If you think today is a problem, better first look back only 40 years to the 1980s. That 18% was for a secured real estate mortgage - just about the lowest rate on the best loan package available. Vehicle loans were higher, personal loans much higher. Machinery and farm loans were pushing unaffordable. Any loan typically required required equal collateral value to be pledged as part of the contract. Student loans required a co-signature by someone with financial backing who was willing to risk it.

Yet the financial media and Wall Street crowd is acting like today's inflation and interest rate hikes are the end of the world. I was reading a story a few days ago where the journalist went back to 1988 just to be able to say this is the fastest interest rate hikes in 34 years. Anyone who's been around knows this is not the highest or fastest interest rate hikes this country has experienced and if she had gone back 6 more years it would have made the interest rate hikes today look like nothing. This is what's wrong with the equities industry. It's not the equities themselves that's bad, it's crap like this that gives the industry a bad name and causes all the problems.

A lot of today's type of loans just didn't exist yet.
By comparison with then, today looks pretty good.

You mean in terms of low rates and easy approval?

To give the president at the time his due, he was a good guy who honestly thought his "trickle down" economics would work, and seemed surprised to find that those who were being "trickled on" weren't so happy about it.

The economy roared under him. So it did work but like anything there are going to be people who don't prosper. That doesn't mean it was a failure but rather a reality of life. It even says in the bible that there will always be poor among us.

 

[Cahaba Valley Farm]

Even with a decline in sales, not sure new prices will decline because of inflation affecting costs of production and delivery.

The prices will decline because people will not be able to afford the financing.

 

[5030]

My new tractor no computer, no emissions.

Not much in the way of tires either...

 

[5030]

What ever Its called hijackin a thread. Smartass. Recommend Mods close this Thread. Stupid ass responses like yours that have nothing to do with the OP statement. LIBTARDS In action!!!!

You obviously have a hair up your butt about something. I suggest you take a happy pill and go elsewhere and please, clean up your language.

 

[Snobdds]

I bought my first house in 1987. My mortgage was 10% with FHA.

that means nothing.

What was the house price to income ratio? Back then it was around 2.5 as an average. There was a time a bank would not let you borrow more than 2.5x your annual salary for a house.

Today the house price to income ratio is around 8. Add that to the financing costs and you suddenly have a huge problem if income shocks hit.

 

[ovrszd]

If you've nothing better to do than argue with strangers on the internet with no point other than making yourself feel right then maybe you should look for a hobby or go for a walk. Cheers

If you have nothing better to do than listen to a couple knot heads argue on the internet with no point other than making themselves feel right then maybe you should look for a life. Cheers.

 

[ovrszd]

You obviously have a hair up your butt about something. I suggest you take a happy pill and go elsewhere and please, clean up your language.

Seems to be a trend...

 

[5030]

The prices will decline because people will not be able to afford the financing.

More like the payment plus the financing.... and the longer you stretch it out, the more finance you pay.

 

[jyoutz]

that means nothing.

What was the house price to income ratio? Back then it was around 2.5 as an average. There was a time a bank would not let you borrow more than 2.5x your annual salary for a house.

Today the house price to income ratio is around 8. Add that to the financing costs and you suddenly have a huge problem if income shocks hit.

We helped our son finance his first house last year. Mortgage lenders are still focused on a maximum 40% debt to income ratio like back in 1987.

 

[5030]

With interest rates going the way they are, I wonder when Kubota will curtail their 0 percent financing?