So if I understand correctly, our current financial cluster fuck is caused by Credit Default Swaps (CDS). Basically, this is a financial instrument that is unregulated and that is pretty much all you need to understand. Financial institutions are greedy fucks and they can't allow money to just sit around in "reserves" to be safe and not making more money. So guys with SPS (Small Penis Syndrome) decide that this is a good way to make money, and it was for a while. They sell CDS's which are like insurance policies against other financial instruments, except they don't have the money to back it up in the event that someone calls in their insurance. Well, guess what? Other financial instruments, like say, sub prime mortages, defaulted so it's time to pay up. What did I just say? Oh, right, they have no money to pay up. This is called over leveraging on a ginormous scale, similar to the scale they weigh galaxies with. Well, like they say, if it is too good to be true, it probably is. The other shoe drops and now we are here. And the US government's reaction is exactly like that of their parents, they go and wipe their asses. Except we are the toilet paper and our bank accounts is the flushing toilet.
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