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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: jackjc who wrote (69875)9/16/2006 1:35:01 PM
From: Wyätt Gwyön  Read Replies (1) of 110194
 
I personally have benefited greatly by buying land and
other properties with borrowed fiat and reaping the benefits
of paying it off on the cheap.

what you should really say is that you were personally lucky. i have been personally lucky as well, but i don't try to draw any universal truths from anecdotes.

imagine if you had come of investing age in Japan instead of the US. if you had "borrowed fiat" and tried to "reap the benefits" in Japan by buying real estate 20 years ago you'd be bankrupt. to make matters worse, because Japan has an underdeveloped LEGAL consumer finance system, you could have gotten into trouble with loansharks and ended up having to run away in the cover of night, to establish a new identity in a new city and hope the loansharks don't catch you.
ja.wikipedia.org

so your success in following the strategy of leveraging a fiat currency for investing in real estate was successful thanks to your being in the West. in other words, thank your lucky stars--it was luck that made you succeed, not the universal "truth" of your investing strategy.

people who "borrowed cheap" at the wrong end of the American housing bubble are facing similar difficulties.

in the world of investing, it's a good idea to recognize when one has been lucky--to thine own self be true, at the least. people who don't admit it usually overestimate the contribution of their own "skill" to their results. then they overplay their hand and eventually lose their bankroll.
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