That D word…
“For years, the bankers claimed that derivatives hedged the risk, but lately Greenspan has turned to bragging about how they serve to spread the risk to parties better able to bear it, which is a roundabout way of saying derivatives serve to transfer losses and potential losses off the banks’ books, and onto someone else’s books.”
If you are interested in economics/global finance, read Lyndon LaRouche’s stinging warning on the derivative bubble that will destroy the US banking system. And a hell of a lot more. You will find a few articles if you google.
Some people think he is mad, some consider him the prophet of doom, I think by and large he is right. Mathematical models have covered up for excessive greed and short sighted behavior for far too long.