LogFAQs > #954996488

Trying to avoid debt is something that people without assets (besides their home and car) should do.

Leveraging assets is something that people with assets should do, especially in an inflationary environment since the value of the dollar is decreasing. This is why the rich often buy real estate on a mortgage when the rates are low. And, of course, utilize margin. From what I've read, it's basically a way to short the dollar.

For an extreme example, in the case of hyperinflation, you could theoretically get a mortgage on a home and a few years of extreme inflation later, pay it off with the amount of money that would buy you lunch.

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<D