"Within a few years, the credit default swap (CDS) became the hot financial instrument, the safest way to parse out risk while maintaining a steady return.
'I've known people who
worked on the Manhattan Project,' says Mark Brickell, who at the time
was a 40-year-old managing director at JPMorgan. 'And for those of us
on that trip, there was the same kind of feeling of being present at
the creation of something incredibly important.'
Don't ask me how a guy who was 40 in 1994 "knew" people on the Manhattan Project, because I have no idea. The point is, everyone in the finance world in the mid-90s saw the proliferation of credit default swaps as a major, game-changing thing.
Now, check out this chart of the Dow Jones Index from 1958 until 2008:
Oh, hello there 1995! And hello there, subsequent explosive growth that was hardly harnessed by the tech bust or 9/11!