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Politics : American Presidential Politics and foreign affairs

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To: Peter Dierks who wrote (30484)	12/20/2008 1:27:29 AM
From: RMF	1 Recommendation Read Replies (4) of 71588

DERIVATIVES are what caused this whole MESS!!! NOBODY could have pawned off all that lousy mortgage paper if it hadn't been backed by those "wonderful" Credit Default Swaps and other ingenious derivative innovations. You could sell a syphlitic herd of cows if you offered "insurance" on those cows. Those derivatives were the insurance. They were also EXTREMELY leveraged insurance. Why do you think AIG seems to be a "blackhole" that the FED needs to keep pumping money into? Also, why do you think that everybody now agrees that the Lehman failure was the "starting point" on this whole downward spiral? You guys get so hooked up on the Fannie and Freddie thing that you miss EVERYTHING else. They've given you Fannie and Freddie as ONE tree so you won't bother to look at the WHOLE forest. There's LOT's of blame to go around on this, but it all essentially comes down to derivatives.

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