Similair to what I would say. They can cause many problems but if they were mispriced hed buy them assuming he trusted his counterparty. You are not suppose to borrow more than 50 pct of securities. Derivatives turned it into a joke it is a way around markets. Total return swaps allows for 100 pct. Trade settlements got pushed out. Securities markets demands 3 days for a reason. The Great Crash - Galbrath.
CM - deeper problem in derivative, this is a dirty business. Dealers are selling this to their clients. We don't need more we need less.
