Costly Elephant: Unregulated Heavily Leveraged Junk Bond and Derivatives Market

THE financial analysts reporting in the mainstream media appear to be intentionally ignoring the elephant in the room.

It is the unregulated heavily leveraged junk bond and derivatives market, which amounts to trillions of dollars and are essentially bets on bets.

Warren Buffet once described them as “financial weapons of mass destruction”.

P. G. COOKSEY, Mandurah.