Farm's could be the next big bubble, I know farmers in my area that were getting $8/bushel of corn in July. Now futures for corn are at $3.76/bushel.
Many farmers took loans out for land and equipment banking on the corn staying high. The banks gave them the cash because other loans were becoming "risky" to their investors.
Land that was $2K per acre a few years back in my area is now 4-5k per acre.
Possible scenario:
Corn in the bins (storage) from the 2008 harvest is sold for next year delivery at $8/per bushel. What if when the farmers ask for the $8/bushel in the spring/summer they get stiffed, because of 'world economic issues'?
What about the loan payments that are based on the corn staying above $7/bushel?
Ethonol was a big corn buyer, but it is starting to fail = even lower prices
China bought ton's of corn from the USA when the $$ was cheap and they had money to import corn.
Crop insurance companies failing, for various market driven reasons.
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This could be much larger then any AIG or GM failure and threaten our national security.
