Credit Derivatives as Weapons of Economic Mass Destruction...

Poorly-understood and badly-modeled financial derivatives turned out to be weapons of economic mass destruction. Jacob Weisberg draws an analogy between all the people (like him) who believed that Saddam Hussein's weapons of mass destruction existed in Iraq before 2003 and all the people (like him) who believed that credit derivative weapons of economic mass destruction did not exist before 2007.

Weisberg writes:

Robert Rubin is the wrong guy to blame for the financial crisis: The...