West Central Alberta Coldest, wettest edge | IMHO deflation will not spare any asset class, but farmland will at least still generate revenue as compared to almost any other asset, especially a Mcmansion in the city, putting a bottom under the price of land, that won't be there for a house that can become a liability really fast. I see dropping farmland prices, but not nearly as severe as stocks, or homes. I also don't see a return to the high interest rates of the 80's, that was during inflation, not deflation. Either way debt will be a killer though. Either through high interest rates, or dropping prices, one or the other seems inevitable. Rising land prices would indicate inflation requiring higher interest rates, dropping land prices, meaning deflation is continuing, so rates will stay low.
Edited by Alberta Farmer 8/3/2010 12:02
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Land Market
