--- title: "Meaning & Key Takeaway of: High leverage is unsafe, not just for a…" description: "\"High leverage is unsafe, not just for a company but the entire economy... LBOs are reducing the safety. Management loses the power to do many things. I..." image: "https://sms4smile.com/quotes/i/7ca/franco-modigliani-81094_business_high-leverage-is-unsafe-not-just-for-a-c_3112308.png" --- # High leverage is unsafe, not just for a company but the… ![“High leverage is unsafe, not just for a company but the entire economy... LBOs are reducing the safety. Management loses the power to do many things. It has no margin for error and less margin for additional risk.” quote by Franco Modigliani](https://sms4smile.com/quotes/i/7ca/franco-modigliani-81094_business_high-leverage-is-unsafe-not-just-for-a-c_3112308.png) [Download](https://sms4smile.com/quotes/i/7ca/franco-modigliani-81094_business_high-leverage-is-unsafe-not-just-for-a-c_3112308.png) [Open image](https://sms4smile.com/quotes/i/7ca/franco-modigliani-81094_business_high-leverage-is-unsafe-not-just-for-a-c_3112308.png) > “High leverage is unsafe, not just for a company but the entire economy... LBOs are reducing the safety. Management loses the power to do many things. It has no margin for error and less margin for additional risk.” [Franco Modigliani](https://sms4smile.com/quotes/author/franco-modigliani/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. High leverage increases risk for firms and the broader economy, reducing flexibility and error tolerance. **In simple terms:** Leverage makes firms fragile and risky. Key Takeaway Limit leverage to maintain stability. Themes risk finance economy management margin error Mood cautious analytical Type advisory financial When to use this quote - corporate financing - investment decisions - regulatory policy - economic forecasting Key Concepts financial stability systemic risk corporate governance Questions to Reflect On - How can firms balance growth and safety? - What safeguards reduce systemic risk? A Different Perspective Leverage can enable growth if managed carefully. ★ ★ ★ ★ ★ No ratings yet [Business](https://sms4smile.com/quotes/about/business/) [Company](https://sms4smile.com/quotes/about/company/) [Customer](https://sms4smile.com/quotes/about/customer/) [Economy](https://sms4smile.com/quotes/about/economy/) [Economy Lbos](https://sms4smile.com/quotes/about/economy-lbos-5438477/) [Errors](https://sms4smile.com/quotes/about/errors/) [High Leverage](https://sms4smile.com/quotes/about/high-leverage-286602/) [Leverage](https://sms4smile.com/quotes/about/leverage/) [Leverage Unsafe](https://sms4smile.com/quotes/about/leverage-unsafe-5438476/) [Loses](https://sms4smile.com/quotes/about/loses/) [Management](https://sms4smile.com/quotes/about/management/) [Margins](https://sms4smile.com/quotes/about/margins/) [Reducing](https://sms4smile.com/quotes/about/reducing/) [Reducing Safety](https://sms4smile.com/quotes/about/reducing-safety-5438478/) [Risk](https://sms4smile.com/quotes/about/risk/) [Risk management](https://sms4smile.com/quotes/about/risk-management/) [Safety](https://sms4smile.com/quotes/about/safety/) [Unsafe](https://sms4smile.com/quotes/about/unsafe/) ## Related quotes > [“Low-leverage people tend to waste a lot of energy on complaining, worrying, blaming, gossiping, scheming, and whining. 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