Credit default swaps, unregulated insurance offered to those who purchased risky subprime mortgage based financial products by the same people who sold them said products, now form a potentially larger problem than the mortgages themselves.

The amount of 60 trillion dollars is quoted in the interview.

but it's not insurance.

THIS video is worth seeing, scary as it is, just for the interview with the head of the association that represents hedge funds and credit default swaps.

His, leering, shit-eating grin when asked about how this could happen tells the whole story.

1980's: Junk bonds
2000's: Derivatives

What's changed?