Weapons of Mass Destruction Bleed Warren Buffet
Does Warren Buffet even believe his own bluster? Apparently not, as one of the world's richest men made comments back in 2003 about derivatives being “weapons of mass destruction.” This was all originally published by Fortune magazine.
He argued back then that these highly complex financial instruments were time bombs that could harm not only their buyers and sellers, but the whole economic system. Mr. Buffet said these derivatives were designed by “mad-men.” He compared the derivatives business to “hell … easy to enter and almost impossible to exit.”
Let us flash forward to this week. Third quarter profit fell 24 percent as derivative bets declined in value for Warren Buffet's Berkshire Hathaway Inc.
Warren Buffet, now 81, gambled on these weapons of mass destruction made by so-called mad-men. He only lost $2.09 billion in the third quarter, with a total loss on these derivatives rising to $8.85 billion, thus far.
Perhaps Mr. Buffet should change his nickname from Oracle of Omaha to False Profiteer. For it seems that Mr. Buffet has entered Hell easily and now finds it almost impossible to exit.
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