In 2002, Greenspan discussing the CDS said that, “The use of a growing array of derivatives and the related application of more sophisticated methods for measuring and managing risk are key factors underpinning the enhanced resilience of our largest financial intermediaries.

Now we have $45 TRILLION of potential exposure out there.

Bloomberg has a pretty good primer here, and it’s fairly entertaining, which goes along with the fact that “Frankenstein’s Monster” is in the title.