Wall Street Side Bets

Turns out that a major contributor to our nation's current economic plight is the role of Credit Default Swaps, a form of insurance someone could take out in the event an investment failed. The catch? You didn't have to actually be invested to take out the insurance. The other catch? Credit default swaps were made illegal more than a hundred years ago and were only recently re-legalized in 2000 by the U.S. Congress. Experts summarize the derivatives as nothing more than investment betting, akin to the kind of side betting Joe the Plumber might make on a sporting event.

Catch the entire explanation from 60 Minutes, required viewing for all tax-paying and voting Americans.