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Producers of commodity products would find their operating leverage working against them, and many would be selling goods at a loss.
Adyen is not getting any share of the proceeds of this IPO, but it will be using its new position as a public company now to super-charge its growth by using it to leverage working with more and bigger customers.
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Or whether he, too, discovers that leverage works both ways.
Unfortunately, when things go wrong the leverage works in reverse.
Leverage works only if there is a chance that it will be used.
It was amplified by newfangled, flighty financial techniques, notably buying assets with borrowed money and watching leverage work its arithmetical magic.
"The increase in leverage worked because, like a Ponzi scheme, it was ramping up the value of the assets that it was financing.
When markets fall this leverage works the other way, as could be seen when investors offloaded assets at fire-sale prices last year.There are many other positive-feedback processes.
Leverage works both ways.
The magic of leverage worked.
Before you rush to look for these situations, recognize the fact that leverage works both ways.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com