Leverage by its definition is scary. As you said increased risk/reward... $X,XXX... | Hacker News

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		moocow01 on Dec 11, 2012 \| parent \| context \| favorite \| on: You Are Naturally Short Housing Leverage by its definition is scary. As you said increased risk/reward... $X,XXX,XXX - 50% chance of 1.2x, 50% chance of 0.8x - not so scary $X,XXX,XXX - 1% chance of 50x, 99% chance of $0 - scary Its only not scary if you have an infinite amount of money and infinite number of rolls of the dice.

anthonyb on Dec 11, 2012 [–]

Your second bet should be greater than 100x for it to be worthwhile. Still scary, but not for the reasons that you were thinking of.

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