Reflections of Rajaram Bojji

I don't understand why the finance gurus still talk of derivatives as a natural corollary of financial system's evolution. The simple bench mark for any innovation should be, you cannot create more value than the available wealth; by perception based floating papers, using further such virtual paper to create even more of the same variety, we create a virtual realit of wealth. It is a hidden game of similar to the same scams perpetrated in earlier days of banking too.It is only Warren Buffet who stated in no uncertain terms that the derivatives will prove to be the weapon of mass destruction for the financial system and got his company out of it. It is time that experts like Rangarajan come out strongly and condemn and ban the derivatives approach in financial systems for protecting the economy from another future down turn. I am glad at least Dr Reddy, our former RBI Governor in a talk with me did agree that considerable risk and inadequate transparency prevail in quite a numb...