[Sandy]

I'm an economics novice, so I have been trying to follow all this stuff with difficulty.

Me too. I've been in Headache City trying to understand some of this stuff. But today, finally, a freeper explains it in plain English. Check this out (it's freepin fantastic, imho):
FReeper Guide to the REAL economic problem - Credit Derivatives - Lesson 1

[Huck]

Thanks Sandy.