So we have a booming market in opaque, complicated financial instruments involving layers of risk, leverage and maturity mismatches. We have unsophisticated investors and issuers, both seeking to avoid government regulations and expecting to be bailed out in the worst case. We have cross-holdings and backdoor exposures to regular credit channels. We have all of this taking place in an environment of booming credit expansion, a deteriorating economy and financial repression. We hate to repeat ourselves, but really... WHAT COULD POSSIBLY GO WRONG?