The banking shell game: “spreading risk” turns to contagion

Here is an excellent article explaining how the derivatives scheme, which “spread the risk” in a way that was supposed to protect investors, has actually spread credit risk like a contagion, infecting everything it touches. 

“Financial Shell Games” by Satyajit Das, New Delhi, September 16, 2007

http://www.business-standard.com/common/storypage_c.php?leftnm=10&autono=298108

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