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Do you have proof of this, because I seriously doubt it is true. The idea there are unused assets waiting in the wings is just absurd.


This is what the private equity industry exists to do (particularly firms with strategies like distressed, roll-ups, take-privates, etc).

They raise funds from large pools of capital, like endowments and pension funds, and they invest it into assets they identify as undervalued or underproducing.

When there is a crash in an asset class, private equity has often stepped in to buy assets at firesale prices from forced sellers.


Wait. Do you believe that right now, there are no large entities around with vast amounts of funds that they are looking to invest? None?


I don't doubt that funds are available. The idea that a perishable commodity can be harvested in days by applying these funds is absolutely bonkers.

I'll turn it around: how long do you think the time to get those crops harvested is? People didn't show up for work, the clock is ticking.

I was responding to someone that seemed to imply that resources were on STANDBY to swoop in and harvest the crops. That is completely untrue and just dumb.


Ah. I think there might be a misunderstanding.

I read GP's comment as saying that large investors will be happy to buy "distressed assets", eg. the bankrupt farm itself, after its ruined crops caused bankrupcy.

They don't care about the crop ; the same way that a speculator might have bought LA real estate for a symbolic dollar after the house itself had burnt down. They don't care about the family house, they care about buying the underlying asset (the land) for cheaper than its real value.


Ah, yes, I think you're right. I didn't read it the same way as you (and others!) and I think my interpretation is wrong.


Oh, it's parked somewhere - Treasury bonds, the stock market, or something. It's still liquid enough to buy a deeply discounted asset when you see one, though.




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