October 2008 - CDS derivatives (Credit Default Swaps) were creating by some Harvard Business School hotshot to insure (to raise the ratings to AAA) and market packages of shakey mortgages and were merely a symptom of the problem of the underlying mortgage securities which were created to implement bad government social policy. The first thing I remember hearing on the news about this crisis was that lenders would be required to verify the income of future borrowers--I couldn't believe what I was hearing.
The CDS's and the resulting CDO's were an attempt to make a "silk purse out of a sow's ear".
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