The End of Wall Street – What Happens Next (From Wall Street Journal)

What caused the sub-prime triggered financial turmoil? Was it the easy money after 911? Or the association of American dream with house ownership? When people can borrow money easily to buy house and live with debts, smart investment professionals invented complicated derivatives to diversify the risk. Though the risk is diversified theoretically, they were spread throughout the whole spectrum of economic sectors. Invention of credit default swap (CDS) by JP Morgan Chase further bundled everything together. And when the time comes, when it is ignited, everything blows up at the same time. Please see this movie by Wall Street Journal.