I just wonder.

An interesting article from money.cnn about the derivatives market. It just makes me wonder how much of the "connundrum" is really related to these types of instruments. If indeed these entities are using as much leverage as implied in the article, then they could have a large effect on long term rates. Could a blow up in one of these funds lead to a large spike in interest rates? It just seems to me that the money guys keep pushing forward with riskier and riskier schemes to make themselves money. As always, the taxpayer will be the insurers of last resort. Thank you AG for you put.

Leverage