Read a report today that the GDP , the US Economy and the Stock Market could, if that Corona Virus comes back in a 2nd and 3rd wave and we don't get a Vaccine developed ; bring the US economy down to 1932 Great Depression levels.

Question:

Say you have a Farm worth $400,000 prior to the Market and every other sector of the US Economy collapsing. If the GDP drops 35 % and the Stock Market and the US Economy tanks down to numbers not actually seen since 1932. I am not talking " adjusted for Inflation" numbers, I mean the actual stock market numbers that were posted in 1932-1933; What would that $400,000 Farm realistically be able to be sold at ?

If we see economic time similar to 1930s i would think most purchases will be based off cash money at hand not borrowed money. That could make land prices very cheap, especially since agriculture isn't generating much profit lately.

Since you're talking about actual values and not adjusted for inflation, It would make sense that if the stock market dropped that low to match "actual" prices of the thirties, then research what land prices in your area were in the thirties and you might have a good idea. I doubt this scenario will happen.

Last time the stock market really dropped (08ish) agriculture land spiked in price as it was seen as a safer investment.

I think we are talking a far different scenario here in several different ways. If you start comparing 08 to the 30s across the whole economy you will see the differences.

Do you have an factual numbers and data for your quote??

If the economy tanks to 1932 levels, this is what things cost back then.....




ANNUAL INCOME 1932-1934
Airline Pilot $8,000
Airline Stewardess $1,500
Apartment House Superintendent $1,500
Bituminous Coal Miner $1,500
Bus Driver $1,373
Chauffeur $624
Civil Service Employee $1,280
College Teacher $3,111
Construction Worker $907
Dentist $2,391
Department Store Model $936
Doctor $3,382
Dressmaker $780
Electrical Worker $1,559
Engineer $2,520
Fire Chief (30,000 - 50,000 pop) $2,075
Hired Farm Hand $216
Hired Gun $5,200
Housemother - Boys School $780
Lawyer $4,218
Live-in-maid $260
Mayor (30,000 - 50,000 pop) $2,317
Pharmaceutical Salesman $1,500
Police Chief (30,000-50,000 pop) $2,636
Priest $831
Public School Teacher $1,227
Publicity Agent $1,800
Railroad Executive $5,064
Railroad Conductor $2,729
Registered Nurse $936
Secretary $1,040
Statistician $1,820
Steel Worker $423
Stenographer - Bookkeeper $936
Textile Worker $433
United States Congressman $8,663
Waiters $520
Average salary $1,368
Clothing
Belt $1.00
Boots, Calfskin riding $10.00
Coat, Cloth $6.98
Coat, Dress $6.75
Coat, Leopard $92.00
Coat, Mink $585.00
Coat, Overcoat $11.00
Coat, Raincoat $2.69
Dress, fair (full body) $3.00
Dress, good (full body) $10.00
Dress, Wool $1.95
Gloves, leather driving $1.00
Gloves, canvas work (six pair) $.39
Goggles (aviator/motorcycle) $4.89
Hat, Dress $2.49
Hat, newsboy/golf cap $.89
Hat, Stetson $3.98
Jacket, Leather Flight $20.00
Jacket, Rugged Leather $17.00
Jacket, Soft Leather $10.00
Pants, fine $3.00
Pants, work $1.25
Set, Heavy Clothes $5.00
Set, Fine Clothes $10.00
Shirt $.69
Shirt, suede hunting $3.00
Shoes, men's $4.00
Shoes, women's $.69
Shoes, Leather $1.79
Shoes, Reptile leather $6.00
Silk necktie $.79
Silk Stockings $.69
Suit, Golf $20.00
Suit, poor $12.00
Suit, fine $32.00
Suit, Tuxedo $25.00
Suit, Wool (men's) $10.50
Suit, Wool (women's) $3.98
Sweater, pullover $1.95
Sweater, Wool $1.69
Personal Effects
Backpack, cloth $2.00
Backpack, leather $6.00
Bandolier $.50
Briefcase $1.00
Cigarette Holder $1.00
Holster $1.00
Pearls, Cultivated oriental $35.00
Perfume, per ounce $1.00
Purse $1.00
Satchel, leather $.90
Spectacles $9.00
Wallet $2.00
Watch (wrist / nice) $22.00
Watch (wrist / average) $5.00
Watch (Pocket/ nice) $10.00
Watch (Pocket/ average) $4.00
Housing/Lodging
Farm & 6 room house $4,250
Italian villa, 12 rooms $17,000
Sears Homes "Kit", 6 rooms $2,800
Silver Cloud travel trailer $695
3-room apartment, $15 a month
Hotel, Waldorf Astoria (NYC), $5-$10 a night
Gadgets
Alarm clock $1.00
Ariel antenna set $2.00
Camera - Bantam, field model $110.00
Camera - Kodak, Brownie $3.00
Camera - Kodak, Vest Pocket $20.00
Headphones $1.25
Microscope x425 $16.00
Microscope x100 $5.00
Movie camera, 8mm $29.50
P.A. system $37.00
Radio (console) $75.00
78 RPM Record $.50
Record Player $9.00
Typewriter $37.00
Miscellaneous
Bicycle $7.00
Book (blank diary/journal) $.60
Book (fine journal w/ lock) $2.50
Cigarettes $.15 pack
Cigarette lighter $.39
Dental filling $1.00
Drawing set $7.00
Fireproof safe $12.00
Fountain pen $.85
Handcuffs $5.00
Ink $.20
Kit, Archaeology $20.00
Kit, Carpentry Tools $10.00
Kit, Lock picking $10.00
Kit, Mechanical Tools $25.00
Kit, Medical $10.00
Kit, Welding/Cutting $95.00
Newspaper $.05
Novel, pulp $.10
Pipe $.83
Scissors, fine $5.00
Slide Ruler $3.00
Household Items
Bed (Double) and spring mattress $14.95
Bedroom set, 3-piece $49.95
Bed sheets, Double $.74
Blanket, Wool $1.00
Brush set $2.00
Chair, Lounge $19.95
Chair, Wing $39.00
Combs $.09
Dining room set, 8-piece $46.50
Electric Coffee Percolator $1.39
Electric Iron $2.00
Electric Mixer $9.95
Electric Portable Sewing Machine $24.95
Electric Shaver $15.00
Electric Washing Machine $47.95
Face Powder $1.50
Flatware, Silver plate, 26 piece $5.00
Lamp, Copper $1.95
Piano, Grand $395.00
Razor $4.00
Razor blades (10) $.49
Rug, wool 9'x12' $5.85
Secretary, Colonial walnut $54.00
Soap (12 cakes) $.40
Sofa, Chippendale mahogany $135.00
Stove, gas $23.95
Table, Bridge $1.00
Table, Louis XV walnut dining $124.00
Table, Mahogany coffee $10.75
Tablecloth, linen $1.05
Tooth brush $.10
Tooth paste (large) $.25
Towel, Bath $.30
Vacuum cleaner $18.75
Food
Apples (per lb) $.03
Bacon (per lb) $.22
Bananas (per lb.) $.15
Beef, Rib Roast (per lb) $.22
Beef, Round steak (per lb) $.26
Beef, Sirloin steak (per lb) $.29
Bread (20 oz loaf) $.05
Butter (per lb) $.28
Cheese (per lb) $.24
Chicken (per lb) $.22
Coffee (per lb) $.26
Cornflakes (8oz package) $.08
Eggs (per dozen) $.29
Ham (per lb) $.31
Hamburger (per lb) $.10
Hershey chocolate bar $.04
Leg of lamb (per lb) $.22
Meal, breakfast $.25
Meal, lunch $.50
Meal, dinner $.75
Meal, Waldorf Astoria (NYC) Morse Grill $2
Milk (per qt) $.10
Onions (per lb.) $.03
Oranges (per dozen) $.27
Pork chops (per lb) $.20
Potatoes (per lb.) $.01
Rice (per lb.) $.06
Salmon (16 oz can) $.19
Sugar (per lb.) $.05
Tomatoes (16 oz can) $.09
Whiskey (per qt) $1.50 (after 1932)
Wrigley's Spearmint or Doublemint gum $.03
Entertainment, Music & Sports
Banjo $16.00
Circus, One Admission $.25
Concert, Bob Wills $.40
Drum set $65.00
Guitar $9.00
Harmonica $1.75
Saxophone $50.00
Trumpet $15.00
Violin, fine 45.00
Ballgame, Professional, one ticket $1.25
Basketball (leather) $1.25
BB air rifle $1.19
Bicycle $7.00
Cyclone, Coney Island, one ticket $.25
Doll carriage $4.98
Fielder's glove and ball $5.00
Movie with refreshments $.30
Roller skates $1.25
Sled $1.45
Tennis racket $4.00
Travel
Air, NY to Chicago (rnd trip) $ 86.31
Air, Chicago to LA (rnd trip) $207.00
Rail, Chicago to San Fran (rnd trip) $ 80.50
Rail, 50 mile monthly commuter pass $10.39
Sea, European 2 month cruise $495.00
Sea, Bermudan 10 day cruise $110.00
Sea, Around the world, 3 mo $749.00
Sea, San Fran to Hawaii (rnd trip) $220.00
Sea, NY to San Fran via Panama $120.00
Hindenburg, TransAtlantic (rnd trip) $720.00
Automobile Services
Automobile Tires, set of 4 $6.35
Engine, V-8, Factory rebuilt $40
Fan belts, Ford and Chevrolet $.12
Gasoline (per gallon) $.10
Motor Oil 1 quart $.15
Parking, All day $.09
Weapons & Ammo
Pistol .22 $5
Pistol, Beretta palm-sized $30
Pistol, Colt .45 $25
Revolver, .38 $20
Revolver, .357 $22
Rifle, .22 $5
Rifle, Hunter $30
Rifle, Elephant Gun $70
Shotgun, Pump 12g $60
Scope $60
TNT, 1 stick $5
Whip, Bullwhip $2
Ammo, .22 caliber $.02
Ammo, handgun caliber $.03
Ammo, rifle $.07
Ammo, shotgun $.05
Adventuring Gear
Binoculars x4 $8.00
Binoculars x5 $12.00
Binoculars x6 $14.00
Canoe, wood $12.00
Compass $1.50
Cooking Gear $1.25
Cot $4.00
Fishing Pole, average $1.50
Fishing Pole, nice $10.00
Flashlight w/2 batteries $.79
Gas Lantern $5.69
Gas Mask $7.00
Grappling Hook $2.00
Parachute $20.00
Shovel/Pick $1.00
Sleeping bag, summer $1.00
Sleeping bag, winter $3.00
Telescope $16.00
Tent, 7'x7' waterproof $11.00
Tent, Pup $5.00
Tent, Umbrella water proof $22.00
Twisted linen line (50yds) $.30

No one can say for sure what would happen. If we go into a 1930s type depression we won't recognize the dollar as we know it. In the 30s the dollar was still backed by gold so there was still value.

Agricultural land did go up after 2008, not because it was a safer investment, instead it was because commodity prices soared based on high demand and a weak dollar.

Taxes will go down along with everything else, I'm sure. Right?
This is how the Gubmint will end up owning everything.

Corn hit $7, beans $14 plus and wheat $10 due to demand, low dollar and worldwide production issues especially in wheat, which rallied other markets. The land prices spiked from about 2010 and up to about 2015-16. They have leveled or dropped. If we drop that much say 50% or more the farm will not drop that much as those with cash will invest in solid investments and land is a solid investment plus it can earn revenues, unlike houses etc. Essential items will hold better than wants and desires. Also have to look at the huge reduction i wages and labor cost with lowered prices but also millions of unemployed workers bidding down to get jobs.

Bryce

x2

So, you are saying after the recession? You quoted AFTER 2008??? If during the recession can you show me data/facts that was the case? It might have been a demographic thing but would like to see some facts on your statement.

Thanks

Many with money during the depression were able to buy huge tracts of land for the back taxes and a very small fee. Several of the cranberry growers in WI bought huge acreages of the lower value land for very low sums, so the government does not always wind up with the real estate. It might be different now. The major sections of the National forests in WI were purchased during the depression.

Bryce

Fella's, if we keep on destroying our food supply lines, you won't have to worry about this stuff.

People need to pull on their big-boy pants and deal with this, this time around let alone the next time.

Hum, that is what I thought, those two didn't have anything to back up their words of wisdom.

Nah, we were just ignoring you. Land values in my part of MN started going up about 2006, maybe even a hair earlier. It really started to ramp up about 2009. I don't have to prove it to you, I lived it.

The recession may have officially ended 2009 but most of the country was still feeling the effects for several years past.

Typical MN attitude. No facts just the way it is. Good one!

If you do not realize that real estate, stocks, bonds, salaries and currencies are way overvalued nothing I say will help you.

The reality is that without a 2nd or 3rd wave of kung flu we are going to have a difficult time and it is really almost a guarantee that there will be a resurgence of kung flu in the coming months.

There is also the possibility of a contested presidential election this November and/or a dem win with biden resigning soon after taking office so the vp pick can take the wheel....then we could be looking @ a restructured Supreme Court and a gun ban shortly after that.

So, explain the specifics of the destroying food supply lines, please.