"I started selling these lots much too cheap," began a neighbor in Nicaragua. "I was letting these beachfront lots go for $30,000 to $50,000. But that was before this big boom in America got underway. I built condos on the ocean, too, and sold them for $150,000. That was only three years ago...no, only two years ago. But I resold one of them last week for $279,000."

Property buyers in Nicaragua - as in Florida and California - seem to have spent too much time in the sun. They've become feverish.

"Even the 'B' lots - you know, those that aren't on the beach - are selling. We're almost out of them. And I'm amazed they would sell at all. It's low land. And when it rains, the whole place is underwater. My tractors got stuck three times during this last rainy season. But the strangest thing was this guy who wanted to buy one of the back lots. He came during the rainy season, so I didn't want to show it to him. Because it was under about a foot of water. Luis came to me and said he wanted to borrow the tractor. I asked what for. He told me the client wanted to see the back lot. We could only get in there on the tractor...and even then I was afraid it would get stuck. But he got on the tractor and went to look at the lot and bought it."

People occasionally make a mistake and buy a lot that is underwater. Sometimes they get conned or swindled and end up with a waterlogged lot. But a real bubble market turns swindlers into honest men. They can tell the truth and still make a sale; the customer swindles himself.

The bubble may be over in North America, Australia and Britain. But new trends reach the tropics slowly, as if by steam packet. For now, developers in Latin America are selling condos, houses and underwater lots without hardly trying.

And perhaps the buyers aren't such fools, after all. Your editor bought a parcel down the coast a few months ago. The price was exorbitant by Nicaragua standards. But compared to the rest of the world, it was a bargain. Even $279,000 for an ocean front condo would leave change in a Miami-based buyer's pocket. And, of course, other costs are lower too - cleaning, gardening, and dining out. Everyday that our family spends in London costs a fortune. We cannot go out to dinner without spending at least $100...usually more. We take a taxi across town and easily pay $40. A cup of coffee and a croissant sets us back $15.

But here...our wallets mildew from lack of use. There is nowhere to go...scarcely a thing to buy...and nothing to do that costs money. We can play in the surf...ride horses...sunbathe...play tennis...read...write...doze... none of it costs much money. We probably save $50 a day just by being here. In a month, we have saved nearly $1,500 - about enough to cover airfare.

Bill Bonner is the President of Agora Publishing.  For more on Bill Bonner, visit The Daily Reckoning.