The Coming Disaster In The Derivatives Markets.
"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....[They] are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal."
-- Warren Buffett, Chairman and Chief Executive, from his Letter to Shareholders, 2002 Berkshire Hathaway annual report.
Speaking as a man who lost around US400 million few years back in unwinding one of it's subsidiaries General Re who got involved in derivatives market. Mark to market; no mark to myth said Warren Buffet when ask about the values of the world derivatives values. Do listen to a man who got his hand burned, whatever Lehman Brothers it's facing was so mind boggling. Trust Buffett will not be available for any advice on how to unwind the massive derivatives markets.
Who got burned and which dealers annihilated will be paraded in the next few months, the most worried part it's the size of the markets exposure of the major bank or investment bank in America
Read yourself above articles form Financial Sense.
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