2215: Financial Mass Destruction by Jesse Cramer
Optimal Finance Daily - Financial Independence and Money Advice
00:00
Introduction
Jesse Kramer: Derivatives and leverage are the real cause of financial mass destruction. Leverage is borrowed money that's used to invest, just like a lever arm helps us lift more weight than we otherwise could. Neither derivatives nor leverage is free; both involve counterparties who are charging or paying a fee. Warren Buffett pointed out that this creates an incentive problem in accounting.
Play episode from 00:00
Transcript
