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About this quote

What does it mean?
Large debts give the debtor leverage over the creditor.
In plain terms
Owing a lot of money can shift power to the borrower.
What can you take from it?
Scale of debt affects who holds the leverage.

Where it applies

  • banking
  • corporate finance
  • personal loans

Putting it to work

  • assess debt concentration
  • negotiate terms

Questions to consider

  • Who holds the power in a debt relationship?
  • How does debt scale change dynamics?

Another view

This dynamic can encourage risky behavior.

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