Matt Taibbi tells me something I didn't know:

The CDS market, this market for credit default swaps that was created in 2000 by Phil Gramm's Commodities Future Modernization Act, this is now a $62 trillion market, up from $900 billion in 2000. That's like five times the size of the holdings in the NYSE. And it's all speculation by Wall Street traders. It's a classic bubble/Ponzi scheme.

Fannie was out of line. Ordinary Americans should not have gone into so much debt - and it's their responsibility. But the scale of the abuse that Taibbi describes as a direct result of the 2000 deregulation is hard to ignore.

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