Tuesday, February 21, 2012

WE WERE WARNED

VIDEO from 1999: Byron Dorgan vs. Gramm Leach Bliley-- WOW

"Derivatives are financial weapons of mass destruction" - Warren Buffett





It wasn't only Byron Dorgan


Buffett warns on investment 'time bomb'

Tuesday, 4 March, 2003

The rapidly growing trade in derivatives poses a "mega-catastrophic risk" for the economy and most shares are still "too expensive", legendary investor Warren Buffett has warned.

The world's second-richest man made the comments in his famous and plain-spoken "annual letter to shareholders", excerpts of which have been published by Fortune magazine.

The derivatives market has exploded in recent years, with investment banks selling billions of dollars worth of these investments to clients as a way to off-load or manage market risk.

But Mr Buffett argues that such highly complex financial instruments are time bombs and "financial weapons of mass destruction" that could harm not only their buyers and sellers, but the whole economic system.

Contracts devised by 'madmen'

http://news.bbc.co.uk/2/hi/2817995.stm

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