My post on Warren Buffett’s clear hypocrisy toward the use of derivatives brought this feedback in from one of his true believers:
Buffett hates toxic derivatives. He writes the most plain vanilla derivatives there are. Not only that he spent hundreds of millions of dollars to close down toxic derivatives when he acquired General Re, the derivatives he writes are probably less dangerous than the insurance policies Berkshire writes.
They served Kool-Aid in Jonestown…did you know? I love the phrasing he uses:
“probably less dangerous”