>Derivatives written against sub-prime holdings tipped the balance when the fan was hit There's a bit more nuance to it: those derivatives were a problem becau

>Derivatives written against sub-prime holdings tipped the balance when the fan was hit There's a bit more nuance to it: those derivatives were a problem because a substantial proportion of them were concentrated in a single, widely-connected, entity (AIG). The derivative market as a whole nets to zero; for every loser there is a winner.