(h/t reader Jack)
The NYT reports:
Not only have individual financial institutions become less vulnerable to shocks from underlying risk factors, but also the financial system as a whole has become more resilient.” — Alan Greenspan
A LINGERING GLOBAL INFLUENCE An interview with Alan Greenspan, nicknamed the Oracle, was shown live outside the Bombay Stock Exchange last month.
George Soros, the prominent financier, avoids using the financial contracts known as derivatives “because we don’t really understand how they work.” Felix G. Rohatyn, the investment banker who saved New York from financial catastrophe in the 1970s, described derivatives as potential “hydrogen bombs.”
And Warren E. Buffett presciently observed five years ago that derivatives were “financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.”
More of this story coming in another post.