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Mascoutah, Illinois | Cheap money has been printed ever since the economic collapse as the FED tries to guard against deflation. We finally have a segment of the markets where substantial profits are going to be booked this quarter. (Some commodities with grains leading.) My view is the money will keep pouring into this area because little if anything other than commodities, insurance stocks, and consumer discretionaries are showing positive returns. Grains are soaring, and if you got in early this move has made more than your whole year as a fund. Just my opinion in this first paragraph.
The question part for folks way smarter than I. Is the FED (Ben Bernanke) feeling good about the agricultural sector inflating (at least something is) or is this their worst nightmare? If you find this as a positive for the economy, will this lead us to economic expansion even though agriculture is just a small sliver in the pie? I saw what the last move in grains along with some other catastrophic mistakes did to our economy. We are in far different times ( I know it is a cliche) than we were two years ago. Was the move in soybeans in the 1970's to the teens a huge derailment to the economy? Was $5.00 corn in the middle 90's a derailment to the economy?
Some thoughts and facts would be very insightful especially from the folks who have been through all three of these grain pricing booms. Thank you in advance. | |
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An economic question and your thoughts.
