The economic situation

Subprime Mortgage-Is the loan that you can get if you have a low credit score.

Credit Swap-A credit swap is when you have bad credit and you need a loan but the bank can't give you a loan because of your bad credit. So what the bank does is takes the credit score of someone else who has a higher score and uses their score to get you a loan.

Credit Insurance-Credit insurance is just like any other insurance company. With credit insurance you can get a loan and if you cant pay it back for any reason such as you losing your job or something like that, the credit insurance company such as AIG will pay for a certain percentage of your debt.
http://www.investopedia.com/articles/optioninvestor/08/cds.asp

These are all causing the market to crash for a number of reasons. With a CDS you may be able to get a loan even if you have bad credit but if you cant pay the loan back who's credit is affected? The CDS business is something that someone created solely to make money and not to help people. People who are getting subprime loans are always defaulting on them and with too many people defaulting the banks cant afford the money there losing and the people cant pay it back so everyone is losing money. With so many people losing their jobs and not being able to find work the credit insurance companies cant afford to cover all the people who they need to cover.