During the Great Depression of the 1930's how prevalent was the purchasing of farms and homes and farms?

Question

at "rock bottom" prices?

In US and Europe as well?

Answer 1

Most of the farms were mortgaged by banks and by insurance companies. When farmers were unable to make their mortgage payments, the banks and insurance companies ended up with the farms. For many years after the Depression, farmers continued to farm by renting the land. As an example, my father bought his first farm in 1962. He bought it from an insurance company!

Answer 2

Was it just farms or was it all property? I have examined the evidence available to me, and I conclude that in a vicious circle of a downward spiral economy the worst case scenario is a run on the banks.

It is the lack of confidence in a system which is effectively bankrupt, which causes the bankruptcy itself. If everyone left their deposits at the bank, then the illusion could last even longer.

Unfortunately, people pulled money from the banks due to a confidence crisis and this caused the banks to require repayment of loans and restrictions on lax credit. Mortgage defaults had to be dealt with in order to retain confidence in banks, otherwise people whose deposits were with the banks would lose everything.

Effectively, "rock bottom" prices would have been the norm when a property was repossessed by a bank (or insurance company).

One must understand what a bank is. It takes money from person A on deposit and loans money to person B. It pays interest to the money on A, and charges interest on the money to B. When B can't pay back the money borrowed, then A has lost the money but it is not realised until A withdraws the money and the bank recognises that B is never going to repay. What happens is that for a long time the bank keeps A and B on its assets and liabilities, even though B should really be written off and any secured assets reclaimed.

This can be seen during the "head in the sand" period prior to a run on the banks, as excessive banking profits being reported. This is reversed when realistic balance sheets are introduced.

Answer 3

Although I don't know the answer to your question, I know that farmers were going through agricultural povity, I don't think they would have known anything about Engles and his work on free society, which would put Britain at the top of the Economic chain in the world, I think they would have eventually come to this conclusion and because people couldn't come to an agreement they would each live for the prosperity of number 1, but the best way to get out of this was to form the NFU.

Answer 4

Well, ther was the Great Irish potato famin, which lent
itself to the English to buy land at rock bottem prices for
grazing,... then, there was the Irish themselves, always
ones, not to miss an oppertunity, be it music, the breading,
the shear sterdyness of the people and the Horses,
then, of course.......theres the GUINESS !!!!!!!!!!
wot other drink can match it ????????????????????????????

Answer 5

You need money to purchase anything, and no one had money.