Buffett hits back at Greenspan over the risk of derivatives
'Warren Buffett, the billionaire investor, has unleashed a further blistering attack on the use of derivatives by banks, arguing that the complex financial instruments could pose significant risks for the health of the global economy.

'In an interview with The Sunday Telegraph, Buffett said: "Any time you get a great concentration of risk and interdependence among a few institutions upon the creditworthiness of others. . . it could get back to the days when you had runs on banks, when the good banks got pulled down by the bad banks."'

An important question is, what relationship (if any) does the derivatives market have to the land boom, either directly or indirectly through the banks? If there is a substantial relationship, then it could conceivably exacerbate the effects of the crash when it comes.

Buffett hits back at Greenspan over the risk of derivatives
'Warren Buffett, the billionaire investor, has unleashed a further blistering attack on the use of derivatives by banks, arguing that the complex financial instruments could pose significant risks for the health of the global economy.

'In an interview with The Sunday Telegraph, Buffett said: "Any time you get a great concentration of risk and interdependence among a few institutions upon the creditworthiness of others. . . it could get back to the days when you had runs on banks, when the good banks got pulled down by the bad banks."'

An important question is, what relationship (if any) does the derivatives market have to the land boom, either directly or indirectly through the banks? If there is a substantial relationship, then it could conceivably exacerbate the effects of the crash when it comes.