Keep watching the online news (Bloomberg.com, wsj.com, etc.). You will be hearing more and more about a credit derivatives problem as we move forward.
This all resulted when commercial banks, investment banks and insurance companies wanted a way to create 'liquidity' from all of the notes that they were holding. They weren't satisfied with just 'good' returns, they wanted returns in the stratosphere.
Some 'smart' people came up with the idea of credit derivatives back around 1995. The financial industry was able to make very complex strategies that put them at a great deal of financial risk, while still making it look like they were meeting regulatory requirements. Understand, they WANTED this risk - because it paid off extremely well while times were good in the housing market.
Then the housing market bubble 'popped' and these 'smart' people realized that they had created an untamed monster that was going to devour them.
The monster is just starting on the appetizers...