[Boris]

It really doesn't mean jack. All Warren said was that he doesn't understand the risk exposure of banks with respect to their derivatives holdings. But let's assume that his worst fears are true. maybe one or two multinational banks or insurance companies collapse. Don't worry. It would make some big headlines in the press but it wouldn't be anything more than a blip on the radar screen of economic activity. There is more than enough free capital floating around to step in and fill the void left by a JP Morgan. Very little wealth creation potential is destroyed when a big bank or hedge fund gets in trouble. It's merely a redistribution of resources.

People like Warren Buffet don't like the derivative risk because it creates uncertainty. Since Warren is rich as hell and is successful with the status quo, he is fearful of anything that might shock the current system. But for people like you and me it wouldn't matter that much. In fact it might just create some opporunities.