While I'd probably never engage in this behavior, I support is wholeheartedly. Getting a Fiat loan with BTC collateral means that Fiat inflation (money supply) has increased. This promotes BTC's price, which pays off the loan. The more people do this, the more Fiat is degraded and BTC is pumped... I.e. this is exactly the speculative attack scenario:

Speculative Attack | Satoshi Nakamoto Institute

Bitcoin will overtake weak currencies like the dollar through speculative attacks and currency crises, not through the careful evaluation of tech j...