[sloop]

Wall Street used its subprime loans as the base for its derivatives. I’m not aware of any derivatives based upon Fannie and Freddy. The derivatives market had developed in London and had no connection with the American mortgage market until Wall Street began writing derivatives on CDOs as a new source of revenue.

housing did not invent the derivative - it has been around longer than this crisis

[Pelham]

“housing did not invent the derivative - it has been around longer than this crisis “

Which is what I said. Gillian Tett wrote the best account of the development of the derivatives industry that I know of.