Leverage and gearing
Akimbo: A Podcast from Seth Godin
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How to Maximize to Day's Profit
Leverage spreads because if you have a competitor who is leveraged, you feel the need to be leveraged. And so what we end up with are companies that don't have six months worth of cash in the bank they have six weeks or six days. When it goes in the other direction, a cascade effect appears. And that cascade says, we lost a little, now we owe more. Positively, the gearing works beautifully when things are going up, because more leverage makes things go up just a little bit faster. Because debt doesn't share in the winnings, the ancpeneur, the capitalist, the person in the centre, gets to keep all the prizes,
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