09-25-2008, 09:37 AM
<b>US economic crisis, Finnish déjà vu</b>
Former Bank of Finland governor sees same mistakes behind US finance crisis that Finland made in 1990s
By Teija Sutinen
<b>Back to the basics of risk</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Yet that is the source of arguably the biggest threat to the global financial system since the Wall Street crash of 1929. And, unlike the 9/11 attack on the World Trade Center, oil shocks and various wars, this seismic event was brought upon the financial system by some of its own major players.<!--QuoteEnd--><!--QuoteEEnd--><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->"I view derivatives," said the legendary US investor Warren Buffett in 2002, "as time bombs, both for the parties that deal in them and the economic system." Buffett has pointed out that before a derivatives contract is settled, the parties might record huge profits and losses in their current earnings statements "without so much as a penny changing hands.<!--QuoteEnd--><!--QuoteEEnd-->
Former Bank of Finland governor sees same mistakes behind US finance crisis that Finland made in 1990s
By Teija Sutinen
<b>Back to the basics of risk</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Yet that is the source of arguably the biggest threat to the global financial system since the Wall Street crash of 1929. And, unlike the 9/11 attack on the World Trade Center, oil shocks and various wars, this seismic event was brought upon the financial system by some of its own major players.<!--QuoteEnd--><!--QuoteEEnd--><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->"I view derivatives," said the legendary US investor Warren Buffett in 2002, "as time bombs, both for the parties that deal in them and the economic system." Buffett has pointed out that before a derivatives contract is settled, the parties might record huge profits and losses in their current earnings statements "without so much as a penny changing hands.<!--QuoteEnd--><!--QuoteEEnd-->