Buffett's Derivatives Exposure Uses "Weapons of Mass Destruction"

Warren Buffett once famously labeled derivatives “weapons of mass destruction” due to the highly-leveraged nature of the contract structure and its ability to literally destroy the economic foundations of a society. The over the counter (OTC) derivatives exposure is said to be near $600 trillion, capable of wiping out the economic value of the world economy, valued at $72 trillion, several times over.  The exact derivatives exposure is unknown because, until recently, these contracts were not transparent and traded off exchange in privately negotiated contracts, the subject of a twenty year battle in Washington...