Article on derivatives from March detailing the dangers:
Derivatives the new ‘ticking bomb’
Buffett and Gross warn: $516 trillion bubble is a disaster waiting to happen
By Paul B. Farrell, MarketWatch
March 10, 2008 ARROYO GRANDE, Calif. (MarketWatch) — “Charlie and I believe Berkshire should be a fortress of financial strength” wrote Warren Buffett. That was five years before the subprime-credit meltdown. “We try to be alert to any sort of mega-catastrophe risk, and that posture may make us unduly appreciative about the burgeoning quantities of long-term derivatives contracts and the massive amount of uncollateralized receivables that are growing alongside. In our view, however, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.”
