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> the more you thought CDOs were safe as houses Didnt Warren Buffett say in 2002 that derivatives were weapons of mass destruction.
by sumedh 10y ago
> the more you thought CDOs were safe as houses
Didnt Warren Buffett say in 2002 that derivatives were weapons of mass destruction.
- nl 10y agoOf course they are (or can be)! Any kind of highly leverage finance can be - they are extremely powerful tools, and in the wrong hands things can and do go wrong. That doesn't make them illegal. The morality of them is more to do with selling them to people who don't understand what they are buying.
- jmngomes 10y ago"they are extremely powerful tools, and in the wrong hands things can and do go wrong." Like guns, or even some drugs. "That doesn't make them illegal." But it should make them heavily regulated and scrutinized, which they aren't, and won't be unless for some serious civic activism.