Over the last few days, as the current economic crisis has unfolded, I have heard a number of comments regarding derivatives and the role thy have played in the financial markets.

Have mortgage related derivatives played the significant role that some media reports have suggested?

Is it true that some or all of these mortgage related derivatives have no asset backing?

I have heard that the primary purpose of the 700 billion bailout is to purchase many of the ‘troubled mortgages’ from the banks. Will any of these bailout funds be used to purchase or otherwise cover mortgage derivative losses?