I'm trying, really hard, to write the next economics post (I promised Toaf. Shut up) but every time I start, another piece of the world economy twists out of all recognition and I have to re-write the whole thing.
So here it is in short until I get a chance to finish it:
Derivatives are bad. They mitigate risk on paper, but the risk doesn't go away. If it was an accounting practice, you'd get done for it.
**Edit** To the person who got here via the search the term "No-Doc Loans Idiotic":
Yes, yes they are. Very.
20 hours ago