[PhilosopherStones]

Once again, derivatives have LESS risk than the original underlying debt (otherwise why would anyone buy them?).

The only problem with derivatives is that no one wants to put a value on the underlying debt. Once that happens, the derivatives will have a value, and a GREATER value than the underlying mortgages because they (by their very nature) have LESS risk.

[Porterville]

Wrong. There is no collateral backing the trillion dollars of bets that the initial loan was based. We are all screwed. Be happy, b/c right now it is all you got... even if you don't understand it.

You will though.