snwbnny9 commented on the public link Warren Buffett: "Derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal" (2002)
1 year 173 days ago
 
Devrivative Demons

I think its interesting that Bush didn't mention derivatives at all in his speech. Derivatives are what is really going to kill our economy. There is about 1 trillion dollars in subprime loans but around 62 trillion in subprime derivatives. Why would a company make loans to people that can't afford them? Because you turn around a bet that the loan will fail. That way you win either way.

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