Warren Buffett and Alan Greenspan don't see eye to eye on the value of derivates. I am have a lot of ambivalence about this issue. I agree with Greenspan that derivatives have a legitimate place in helping companies to hedge their risk. But Buffett too is correct when he says that such instruments lead to speculation, which is bad for the market.
There will probably be more legistlation to regulate the derivatives market in the future. I am sure in the end Congress can do something about this that makes everyone equally upset.
Have you read these books recommended by Warren Buffett.
