We are told that
the economy is in recovery. Things are getting better. Facts and figures
bolster the argument: Lower unemployment figures. Higher GDP numbers. Affordable
health care for all.
I look at my
personal world and it doesn’t reconcile with the narrative.
Is
it just me?
I expand the
circle and take at those around me.
They don’t seem
to be doing so well either.
Local oil
companies, (the majors, anyway, which aren’t the majors that come to mind),
continue to operate, but everyone knows the current price of crude does not
come anywhere near the cost of exploration and exploitation.
The large
outfits lay off a portion of the help and speak of hedged oil prices that allow
them to continue for six more months.
The little guys
did not hedge their oil. So, they lay everybody off, aside from perhaps a
skeleton crew to keep remaining assets from being stolen. The service companies don’t get paid.
Hotels, recently
booked two years in advance, sport vacancies, and even more soon-to-be-new
hotels have yet to open their doors.
The truck that sold tacos to passing oil field trucks quit coming.
Pickup truck
salesmen watch nervously through shiny glass windows for non-existent buyers,
worrying about bills at home, knowing their only income is derived from
commissions; the trucks don’t sell.
Farmers plant
crops, hoping government subsidy programs bridge the widening gap between
production costs and the current price of grain, knowing that without this
assistance, they lose money for their efforts.
Bankers watch
accounts dwindle as clients pilfer retirement reserves to pay bills; the day
arrives when the retirement account is retired and those bills go unpaid.
Then it’s, I can’t pay you because he didn’t pay me, only
he tells the same story about
another.
A scene from the
movie, Cinderella Man, comes to mind: The Depression era boxer Jim Braddock, (played by Russell Crowe), arrives at an upscale apartment of a believed-to-be
wealthy associate, looking for a loan, only to discover a cold, empty home,
devoid of furniture, sold to maintain the appearance of wealth.
Cattle are high.
But many places no longer have cows, which were sold during the droughts. Truth
be known, just about everyone raising cattle has a day job to support the habit,
and it has been this way for the last 40 years.
Today’s beef prices
are necessary to break even, not to make a profit, just to pay expenses.
There’s no way
in hell this endeavor justifies the supposed value of the land those cattle are
raised on.
Meanwhile, meat
has become inaccessible for many consumers due to current prices.
A few years
back, I received a windfall.
I distrust and
dislike banks and lending institutions.
So, rather than
place money in a bank account, which would then be lent out to others, others
not of my choosing, I decided to lend money to friends and associates I thought
had viable enterprises in need of funding.
The recipients covered
a wide array, from farmers and ranchers, here and abroad, to musicians and even
a start-up insurance salesmen. There was a flower salesman and even a medical
marijuana guy in a state where such is legal.
One guy trained
race horses.
My wife opened a
business, built from scratch from raw land.
We restored an
old store from ruins.
Bought a small
irrigated farm in West Texas.
And, bought way
too many fine Thoroughbred horses.
None of the
people I loaned money to were able to pay me back. All are decent, hard-working
people; all made honest efforts, yet none could repay their loan, aside from
one of minimal value and he sold a house his grandfather gave him before dying to do so.
Most of these
people continue to work, vigorously. Some have a few remaining assets; most don’t.
Those assets
could not be sold for a fraction of the money it cost to buy them.
I can’t throw a
rock at anyone, because my personal situation is similar.
While I don’t
owe money to any institution, I have borrowed money and goods from my father
and have been unable to repay him.
Both of us are
in essence, broke. Not yet insolvent, but broke. We got no cash. Or maybe we
are insolvent and don’t yet know it.
What happens
when the value of assets becomes zero?
Nearly all the
horses I bought were acquired at pennies on the dollar from their previous
value, some of which arrived from other failing operations—high scale
operations.
To this day I
receive calls from yet others, offering to sell me horses, good horses, cheap.
And there’s no
shortage of decent mares to be had for free.
I decline.
I'm already overstocked.
For those that
advise selling the horses I own to fix my own situation, I ask: To whom?
It’s not like
there are people lined up at my door with money waiting to buy a horse.
Aside from that,
they’re worth more than money to me.
They’re living
creatures. They know me. They trust me.
They’re
magnificent.
They cost
money to maintain.
I’ve made
mistakes for lack of money I needed to provide proper care.
Recently I fed
hay we grew containing Klein grass, good for cattle, but potentially dangerous
to a horse. Times past, I got away with this.
This year, I
lost three foals. I suspect Klein grass was the culprit.
We had the hay
and I didn’t have money to buy something better without allowing some other
obligation to go unmet.
In river bottoms, the shit encroaches from places upstream, whether you plant it or not.
Try explaining
this to an anxious mare watching over a foal that won’t get up to eat because
it died.
And if I sell
the horses to someone else that can’t care for them (whether they realize it or
not), or send them to slaughter, then where do the people in my employ that
care for these animals go?
These are tough
times.
To any and all
that owe me money:
Your debt is
forgiven.
Circumstances
beyond your control created your demise.
I know you tried. I've been watching. Struggling alongside you.
Lord, have mercy.