This is some mind boggling shit here my friend. This whole read is quite good actually but pay attention to the employment number methodology and the CDO created by Merrill, fascinating. http://www.frontlinethoughts.com/pdf/mwo010408.pdf "âFor Norma, [the manager] assembled $1.5 billion in investments. Most were not actual securities, but derivatives linked to triple-B-rated mortgage securities. Called credit default swaps, these derivatives worked like insurance policies on subprime residential mortgage-backed securities or on the CDOs that held them" They made CDO's that had no real hard assett's??? WTF?? packaged a derivative into a derivative and sold that. Run for the hills fast.