Some $36 billion of loans via CDOs were made this year, more than the previous TEN (10) years combined, according to Morgan Stanley.

"We think that there is a kind of credit amnesia that is going on,..." said William Chew, managing director at S&P in New York.

The debt markets "have reached a point where we can't go any further," says S&Ps Steven Miller. "Some of the deals introduced into the market [this year] felt like they were at the edge of a cliff, leaning over." (WSJ, 3/27/07)

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"...the explosion of woldwide derivatives, whose notional has now reached some $440 trillion (OTC and listed) - over NINE (9) times the size of the global economy." -Stephen Roach (MS)