The Most Valuable Resource of All.

A number of researchers of the 2007-08 subprime meltdown-recession have asked the question, "Who saw this coming?"

Who not only called it before it happened, but more importantly, put their money where their mouths were. Because, if you shorted the sub-prime mortgage issuers, major banks and especially the insurers of the collateralized debt instruments prior to the July 2007 crash, you stood to make an obscene amount of money.

But easier said than done. So far, the list is down to six. Six individuals have been identified as having done this. To cut a long story short, one of them was Dr. Michael Burry. Burry is an Asperger's Syndrome sufferer and medical doctor that quit practicing to concentrate on his true interest of financial markets. It is difficult to estimate accurately the amount of money he made as an individual investor shorting this market, but the agreed minimum is $110 million. Not bad for someone who's net worth was less than $600,000 to start with.

So what did he do next, we ask with anticipation of following the leader. He started purchasing almond farms in California. I always wondered why he did this and originally thought he just wanted peace and quiet and become a hobby farmer. But no, Asperger's Syndrome sufferers don't have hobbies. Michael had his eye on the long play for the most valuable resource of all - water.

Water in California is two things - very valuable and very controlled by the Federal government. Due to historical politics, California farmers have engrained legal rights to 80% of all the water in the State, even though the entire agricultural industry in California makes up only 2% of the State's economy. And almonds require a shite load of water - more water is used in almond production alone than used by all the residents and businesses of Los Angeles and San Francisco combined. Think about that.

As agricultural users of water obviously get first dibs on the water in that State, they own 80% of the resource. And their ownership rights are protected by the Federal government and a lobbying group in the same league as the NRA and Israelis. Thus any changes in the distribution of water in California will have to come with a very attractive compensation package for the current owners.

So, hobby farmer...? It's amazing what a person can do without the distractions of being a human being...