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MacK: A little knowledge is a dangerous thing. You say that a zero-coupon bond is a derivative, and a better example of one than a securitized pool of mortgage loans. Well, a zero-coupon bond issued directly by the borrowing company or government is just that: a bond, not a derivative. And a securitized pool is an example of a derivative, even if it's not your favorite example. Look it up.
I challenged author Andrew Leonard in his statement that "the same games that Wall Street played with subprime are likely being played in every sector of the economy." You responded with examples of investment categories such as "private equity, hedg [sic] funds, etc." Never mind that most small investors don't venture beyond stocks and mutual funds. I challenged Leonard on sectors of the economy, not on investment categories. Sectors of the economy include, for example, automobiles, petroleum, chemicals, agriculture, transportation, banking, health care, education, publishing, etc. Private equity and hedge funds are not sectors of the economy.
