> In the short run, a lot of leverage makes sense, it helps you get a leg up, but if there's a Black Swan, then you're out. Its probable to me that no steady s

> In the short run, a lot of leverage makes sense, it helps you get a leg up, but if there's a Black Swan, then you're out. Its probable to me that no steady state exists - that in between each black swan event, given sufficient spacing, the companies that most highly leverage their financials/JIT pipeline will out compete the ones that behave more "rationally" in the interstitial period. The higher coefficient on the exponent just wins (growth maximizing into an empty market) even if it kills every company that does it.