" .... We’ve learned that too-clever-by-half financial product creations can’t make risk magically disappear. Until the crisis hit, the people who had devised mortgage-backed derivative products such as ABCPs firmly believed that by bundling up pieces of risky mortgages and reselling them, they were spreading the risk of mortgage defaults so thin that they were all but eliminating the danger.."

Oh dear - bankerese at its best  .-)
" Believing that bundling and spreading risk to eliminate the danger " might more properly be re-worded to say " Getting rid of junk paper gift wrapped in BS by selling it to innocent uninformed investors " !!!!!!!!!! Selling garbage under false pretenses still means its garbage. And it was even garbage as originated under the governemnt NINJA policy ( NoIncomeNojobNoAsset ) as a matter of political expediency. Government policy $$ garbage eagerly snapped up by financial manipulators to be peddled at a profit.