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Citi's Big Idea

The guys at Citi are smarter than anyone else on the Street, which is why they are about to launch the first derivatives EVER that will pay out in the event of a financial crisis.
As Chris Whalen, at Institutional Risk Analytics, told us about the news: "It's cute. Though a bit ironic coming from them."Yes, it's ironic and the mere concept could be funny if it weren't that scary.

Considering that Citi stands in fourth position with $32 trillion in notional amounts of derivatives contracts as of the third quarter of 2009, according to the Office of the Comptroller of the Currency, and has yet to demonstrate that it has only the slightest idea about what it should do with them, this is rather startling.
Yes, financial innovation is inherent to functioning markets, but creating something based on something that obviously didn't' work out in the first place, (and/or that you have trouble understanding) seems ludicrous. Ain't 2006 anymore people.