Shit happens and even the smartest people can get fucked, just look at the LTCM blow up. So of course it's possible.

It's impossible to eliminate all risk, regardless of the leverage ratio. I'm just saying that leverage isn't a reasonable proxy for risk. You have to dig deeper.

That sounds reasonable at first glance, but it would be really interesting to see a proper study of leveraged investments throughout the modern era, and their tendency to blow up compared to the volatility of what would be the reasonable alternative.

if you have 10x leverage, your insurance against black swan events is to try to go 10x bankrupt.

it really depends on the underlying asset. short dates bond trading involves large leverage because short-term bonds tend to not move much