{"id":9344,"date":"2015-06-23T06:12:12","date_gmt":"2015-06-23T11:12:12","guid":{"rendered":"http:\/\/olduvai.ca\/?p=9344"},"modified":"2015-06-23T06:12:12","modified_gmt":"2015-06-23T11:12:12","slug":"warren-buffett-derivatives-are-still-weapons-of-mass-destruction-and-are-likely-to-cause-big-trouble","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=9344","title":{"rendered":"Warren Buffett: Derivatives Are Still Weapons Of Mass Destruction And \u2018Are Likely To Cause Big Trouble\u2019"},"content":{"rendered":"

Warren Buffett: Derivatives Are Still Weapons Of Mass Destruction And \u2018Are Likely To Cause Big Trouble\u2019<\/a><\/h3>\n

\"Nuclear<\/a>After all these years, the most famous investor in the world still believes that derivatives are financial weapons of mass destruction.\u00a0 And you know what?\u00a0 He is exactly right.\u00a0 The next great global financial collapse\u00a0that so many are warning about<\/a>\u00a0is nearly upon us, and when it arrives derivatives are going to play a starring role.\u00a0 When many people hear the word \u201cderivatives\u201d, they tend to tune out because it is a word that sounds very complicated.\u00a0 And without a doubt, derivatives can be enormously complex.\u00a0 But what I try to do is to take complex subjects and break them down into simple terms.\u00a0 At their core, derivatives represent nothing more than a legalized form of gambling.\u00a0 A derivative is essentially a bet that something either will or will not happen in the future.\u00a0 Ultimately, someone will win money and someone will lose money.\u00a0 There are\u00a0hundreds of trillions of dollars<\/strong>\u00a0worth of these bets floating around out there, and one of these days this gigantic time bomb is going to go off and absolutely cripple the entire global financial system.<\/p>\n

Back in 2002, legendary investor Warren Buffett shared the following thoughts about derivatives\u00a0with shareholders of Berkshire Hathaway<\/a>\u2026<\/p>\n

The derivatives genie is now well out of the bottle, and these instruments will almost certainly multiply in variety and number until some event makes their toxicity clear. Central banks and governments have so
\nfar found no effective way to control, or even monitor, the risks posed by these contracts.\u00a0In my view, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal<\/strong>.<\/p><\/blockquote>\n

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…click on the above link to read the rest of the article…<\/p>\n

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Warren Buffett: Derivatives Are Still Weapons Of Mass Destruction And \u2018Are Likely To Cause Big Trouble\u2019 After all these years, the most famous investor in the world still believes that derivatives are financial weapons of mass destruction.\u00a0 And you know what?\u00a0 He is exactly right.\u00a0 The next great global financial collapse\u00a0that so many are warning […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[6625,1668,6626,5698,6627,6628,6061,916,341,6629,1603,6129,536,6630,6631,6593,4431],"class_list":["post-9344","post","type-post","status-publish","format-standard","hentry","category-economics","tag-derivative","tag-derivatives","tag-derivatives-are-weapons-of-mass-destruction","tag-derivatives-bubble","tag-derivatives-crisis","tag-derivatives-time-bomb","tag-financial","tag-financial-collapse","tag-future","tag-global-financial-collapse","tag-global-financial-system","tag-investor","tag-money","tag-the-future","tag-the-most-famous-investor-in-the-world","tag-warning","tag-warren-buffett"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9344","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9344"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9344\/revisions"}],"predecessor-version":[{"id":9345,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9344\/revisions\/9345"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}