What Was The World Thinking?

[Parsad]

Story on how Greece is said to have arranged swaps with 15 different investment banks:

 

http://www.bloomberg.com/apps/news?pid=20601087&sid=aViC_3fxSWK8&pos=3

 

How is it possible that the world allowed a derivatives market of $60 trillion dollars and there was no oversight, regulatory body or clearing house?  What the hell was everyone thinking!  Cheers!

[ubuy2wron]

Parsad, CDS and other hedging tecniques allowed entities to turn inherently risky investments to be turned into investments with no more risk than the least risky investments, US treasuries, the final irony is that these investments have rapidly been turned into US treasuries and US treasuries have become much riskier as a result.