The 2007-2009 financial crisis illustrates that derivatives cannot be used to hedge -- financial institutions should be barred from using them in any form.

Question

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The 2007-2009 financial crisis showed that derivatives can be used to hedge against risk, but they can also be used to create risk. Financial institutions should be allowed to use derivatives, but they should be subject to strict regulation to ensure that they are used in a safe and sound manner.

The 2007-2009 Financial Crisis Illustrates That Derivatives Cannot Be Used