Umm, I think you mean CDOs. CDS are credit default swaps. These are what brought AIG down. Frankly I think you are the one being glib. A huge problem with C

Umm, I think you mean CDOs. CDS are credit default swaps. These are what brought AIG down. Frankly I think you are the one being glib. A huge problem with CDOs was that many carried AAA ratings. In this past, buying a security with this rating was doing your homework. Unfortunately, Moody's and S&P were not purveyors of accurate information on these securities. This became a huge problem since AAA ratings allowed banks to hold these securities and call them capital.