I believe Warren Buffett said derivatives are a fools...

I believe Warren Buffett said derivatives are a fools game;

http://www.fintools.com/docs/Warren%20Buffet%20on%20Derivatives.pdf

excerpts;

I view derivatives as time bombs, both for the parties that deal in them and the economic system.

The errors usually reflect the human tendency to take an optimistic view of one’s commitments. But the
parties to derivatives also have enormous incentives to cheat in accounting for them. Those who trade
derivatives are usually paid, in whole or part, on “earnings” calculated by mark-to-market accounting. But
often there is no real market, and “mark-to-model” is utilized. This substitution can bring on large-scale
mischief