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	<title>David&#039;s Macro Blog &#187; derivatives</title>
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		<title>Did the financial world collapse in 2008 because of risk free bets?</title>
		<link>http://www.davidoverfield.com/21/did-the-financial-world-collapse-in-2008-because-of-risk-free-bets/</link>
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		<pubDate>Fri, 03 Jul 2009 23:07:44 +0000</pubDate>
		<dc:creator>David Overfield</dc:creator>
				<category><![CDATA[Business and Finance]]></category>
		<category><![CDATA[Credit Default Swaps]]></category>
		<category><![CDATA[derivatives]]></category>
		<category><![CDATA[financial collapse 2008]]></category>
		<category><![CDATA[Khan Academy]]></category>
		<category><![CDATA[trading]]></category>
		<category><![CDATA[Wall Street]]></category>
		<category><![CDATA[Warren Buffett]]></category>

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		<description><![CDATA[Warren Buffett calls derivatives “financial weapons of mass destruction.”  Do you believe him? Derivatives are financial instruments whose prices are derived from underlying assets.  One example would be a futures contract between a farmer and a food processor.  In this case the underlying asset is the grain harvested by the farmer and the derivative is [...]]]></description>
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