To: CDHart
Can you explain what a derivative is?
Think of derivatives as "Las Vegas on massive amounts of steroids".
For a more technical description you can go to Wikipedia
here. It's definition is not for the faint of heart.
While not being a fan of Warren Buffett, I can't argue with his financial success. He calls derivatives: "financial weapons of mass destruction".
To: politicket; bpjam
Thanks to both of you for your help. I will check out the links that you provided.
Carolyn
29 posted on
04/03/2008 11:31:27 AM PDT by
CDHart
("It's too late to work within the system and too early to shoot the b@#$%^&s."--Claire Wolfe)
To: politicket
You're right. I didn't understand all of it, but it seems as if it's a whole house of cards waiting to fall to destruction.
Carolyn
31 posted on
04/03/2008 11:36:15 AM PDT by
CDHart
("It's too late to work within the system and too early to shoot the b@#$%^&s."--Claire Wolfe)
To: politicket; CDHart
From that Wikipedia link:
The main use of derivatives is to reduce risk for one party. ROFLMAO! If only!
In reality, the main use of derivatives is wild speculation in a super-high risk game of chasing super-high profits, while TELLING regulators and the dimmer-witted executives at the speculator's sponsoring financial institution that the trades are being done to "reduce risk".
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