Marvin Gandall: > Hungarian, but a good essay nonetheless. :)
No! It is not a good essay. It is a wonderful demonstration of lack of understanding of derivatives, as the following statement of its author demonstrates: > the rate of profit on capital can be significantly > higher, and the risk much lower, than if you > invested in any tangible or productive asset - > derivatives allow many bigger capitalists to make > more money faster, with less bother and less risk. The above is true only if they have the reigns in their hands. Just as they can make more money faster, they can lose more money equally faster, if they don't have the reigns in their hands. So Buffet is right: > derivatives are "time bombs" and "financial > weapons of mass destruction" And this system, under the domination of strured finance and derivatives, is heading towards its "self-destruction", assuming that until that happens we can avoid an ecological collapse or a nuclear disaster. Watch Fannie-Mae in these days. Best, Sabri
