I think is is about the gambling aspect of derivatives.
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The real estate was necessary to lure in the rubes who thought they were buying a piece of a security based on something both real and secure ... The investors were necessary to create the CDO's/CMO's/Certificates etc. so that there was a ready known source of securities that Wall Street knew and controlled the quality of ... you create crapola (create huge fee income) , you bet against it ... result immense profits .. ,, foreclose on the properties that you bought with investors money AND KEEP THE SALES PRICES OF THE HOMES FOR YOURSELF!
When are we going to break out the piano wire for the banksters?