credit default swaps 101: Find a bubble. Short said bubble. Insure short. Collateralize said insurance. Repeat.

Marketplace Senior Editor Paddy Hirsch gives a primer on credit default swaps, those derivatives much blamed for facilitating the financial meltdown. There’s some recent irresistible writing on the topic—the prospect of reading Michael Lewis’ The Big Short as time soon permits excites me terribly. The prologue is better than fine.

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