Warren Buffett has labelled certain derivatives as "financial weapons of mass destruction", while the former Chair of the US Federal Reserve, Alan Greenspan, has stated "by far the most significant event in finance in recent decades has been the extraordinary development and expansion of financial derivatives". 

 

Critically evaluate the above statements in the context of any case(s) with which you are familiar. 

1. Outline the trading strategy responsible for the losses in each case.
2. Discuss the main lessons that you believe should be learned from the cases in question.