This past Friday, President Barack Obama again threatened to veto any financial reform bill that fails to tightly regulate financial derivative products which many blame for the 2008 economic crisis. Derivatives work like insurance to protect certain investments, and provide stability to the price of most goods and services. For example, farmers buy derivatives on the price of their crops, so if the price of their crop plummets, the price of the food at the grocery store won’t change that much. Airlines buy derivatives on oil, so if the price of oil goes up drastically, they won’t have to immediately hike ticket prices.

Lehman Brothers CEO Dick Fuld shares President Obama’s view on derivatives. He also blames them for http://blog.heritage.org/2010/04/20/morning-bell-the-wall-street-bailout...