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Thu Oct 03 2024
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5 answers
1274
What is Warren Buffett derivatives weapons of mass destruction?
Have you ever heard the term "derivatives weapons of mass destruction" attributed to Warren Buffett? It's a phrase he famously used in the early 2000s to describe complex financial derivatives, such as credit default swaps and collateralized debt obligations. Buffett was concerned about the risks associated with these instruments, particularly their potential to cause systemic financial collapse. In this light, what is your take on Buffett's view of derivatives as weapons of mass destruction? Do you think his concerns were warranted, or have derivatives been unfairly stigmatized?
