Spend two minutes of your life finding out all that you need to know about synthetic CDOs by watching this YouTube clip of Senator Claire McCaskill, Democrat, Missouri explain to a bunch of Goldman Sachs executives what CDOs are all about: gambling, pure and simple.
No doubt Senator McCaskill lacks the sophistication of the Goldman Sachs execs she is addressing, who are undoubtedly the smartest guys in the room. She is new to Washington, having been elected only in 2006, and has lived in Missouri all her life, like three generations of her ancestors.
Maybe that is why she is able to see the CDOs for what they are. Judge for yourself at http://www.youtube.com/watch?v=E2Rt9iN159U