[BIGLOOK]

Ok, color me an idiot - what, exactly, is a derivative?

Don't feel alone.....even holders of Derivatives ask the same question.

Look at it this way. Derivatives are held by the underwriters of debt. Debt becomes a financial instrument that can be swapped, sold (as options) in the futures market or forwards and don't mean a GD thing when the economy sours and values fall. It's become synonymous with 'Bad Paper' lately.

[Ernest_at_the_Beach]

Sort of like poker chips....?

[patton]

But I have lots of debt - a million or so.

Why would anyone think that is worthless?

Never been late on a payment, even.