Credit default swaps are consistently listed as one of the top reasons for America's current economic crisis, and though many on main street probably have a less-than-perfect understanding of how they work. Last night, 60 Minutes tackled the issue.
As Steve Kroft explains in the segment's introduction:
The world's financial system teetered on the edge again last week, and anyone with more than a passing interest in their shrinking 401(k) knows it's because of a global credit crisis. It began with the collapse of the U.S. housing market and has been magnified worldwide by what Warren Buffet once called "financial weapons of mass destruction."