Yes, there's no evidence that there is any downside to this behavior, so long as there is no deflation and the Fed will prevent that. Even if you do become insolvent, you usually get to keep the stuff or you get a bailout. And now they're going to offer government guarantees for THIRD mortgages.
In fact, if the currency collapses through inflation, the person who used the most debt to buy the most hard assets wins.
We actually didn't get to refinance our home, after the housing crash, because our mortgage was too sound. We'd put so much money down that our interest rate was reasonable. People who had put nothing down ended up with lower mortgage payments than we had because they'd had higher or variable interest rates! š
I witnessed this in my own life. My parents always advocated for living within your means. Making extra mortgage payments to pay it off faster etc. They disparaged my friendsā parents who over-extended, burdened by huge mortgages, but living in big nice houses.
Nothing bad ever happened to those people my dad talked about, as far as I could tell. The lesson I took from this was that the system does not reward prudent behavior. In a corrupt system, being responsible is irrational.
Under a Bitcoin standard, debt will be fatal. But under our current fiat standard, the winners will be those who can acquire the maximum debt in fiat units and stack Bitcoin with it.
Just donāt be a forced seller.
Yeah, we live within our means and we're basically economic fools, to do so. Nobody else does and economic policy is set for the majority.
