http://60minutes.yahoo.com/segment/197/credit_default_swaps
If you missed 60 minutes Sunday, here is a link. A lot of information from the show is not on the clips, but they still are very informative.
These credit default swaps were actually "insurance " that was not called “insurance” in order to avoid regulation.
The derivatives are “side bets” made on almost any type of financial transactions and markets. Literally “Vegas” type betting taking place by the financial institutions.
Ralph