Buffett Was Right: Derivatives Are Destructive

This is an excellent, short and clear explanation of what's happening out there - it's very scary. $500 trillion of derivatives is a lot of money. Certainly they are not all bad or worthless, but nobody seems to know where the bottom is on this day.

nothing like keeping it simple! just a good O' 5% return on your money over time will make anyone a millionaire.

Boo Yah! to Buffett.

People usually get greedy. They won't be happy with 5% return. They always try to either beat the market, or double the money quick.

Buffet is right again. Time to get back to basics. Just like our grandparents said, if it sounds too good to be true, it probably is. If it's too complicated for the gist of it to be described in a half page paragraph, it's either dangerously convoluted or it's a ponzi scheme.

"nothing like keeping it simple! just a good O' 5% return on your money over time will make anyone a millionaire." Um, yeah, anyone who lives live long enough. A 5% return with 3% inflation will turn $100,000 into a million in a mere 117 years. If you only have $10,000 to start you'll just have to wait a little longer -- 233 years. -Mercy

while giving a job in finance sector the firms ask a degree in MBA from a world class business school,experiance,etc.....Are these guys, who lost their jobs,from footpaths?In a few bankruptcy cases CEO's were offered millions of dollars to quit their positions ,that too for what?for bringing the company under loss.The money lost in such cases is common investors or somebody elses?who are all the beneficiaries?All these questions point towards preplaned drama.

I love making money

That's absurd. Derivatives aren't the problem. It was plain old fundamental stupidity; tons andtons of lending to people whio had no hope of eveery being able to pay their obligations with the debt secured by assets that weren't worth anywhere near what the dumb lenders asumed. Even if derivatives ahd never been invnted, we'd still have a financial explosion. And don't beleive the pablam Buffett dishes out to the public ... Bershire often owns tons of derivatives; whjen buffett's analysis supports such a position.

Keep it simple and weather the storm, 5% is ok, $112.per barrel gas hurts.

Well Mr Aaron, This is almost a duh !!! Warren Buffett has been saying so many years and journalist folks like you kept down playing it or rather completely dismissing it, because everything is good while the clock is ticking and bankers are making money.

BSC, sucka!!!!!!

Arrest all those responsible for the Bears' fatality.

This $500 trillion is an insane number. All the stock markets on the globe are only $100 trillion.

Live by the derivative, die by the .... to bad some innocent civilians have to get massaquered along the way.

be patient and keep walking for profits

Derivatives may not be destructive.The excessive guidance given by the few analysts suck the herd of bulls at tops and the herd of bears at bottoms

optimism will win out. Things will be back to normal in a month or two. But eventually our government will run out of ways to bail people out. Then-watch out!

if you believe them, you will also beleive what my ex has to say too.

Totally preplanned drama. You might be able to quit per your contact, but then again, there's more than way to skin a cat. If you can't quit and you don't want to work there any more, what else do you? Run the company out of business. No business, no contract. And what the he double l, you've still got your golden parachute.