I think what he was saying, and I guess what TG56 is saying, is the "problem derivatives" were not in an "exchange", and people took and made bad bets with people that couldn't really pay the insurance (edit: insurance claims, I mean) if there was a "100 year flood". When these powerful companies (like Goldman Sachs) finally took it on the chin, they had clout in government high places that got them bailed out (while choosing to sink more reputable Lehmans, as I understand it), and put the taxpayer on the hook. I'm not sure who would watch over the exchanges (since SEC has done such a bang up job), but when harder times come, I sure hope there is a loud cry for investigations and incarcerations of all the Bernie Madoffs out there. Maybe even some recuperation from the Goldman Boyz if/when they are found to have conspired with politicians against "we the people". BBC Speechless As Trader Tells Truth: The Collapse Is Coming - And Goldman Rules The World http://www.youtube.com/watch?v=grwnAZRoPJ0&feature=share