[patio11]

Well, to approximate a synthetic CDO squared, you'd first put all the moldy strawberries in a new basket, label it "Strawberries", send it to the rating agency where it would be rated AAA American strawberries, and then sell firms their choice of the least, middling, or most risky slices of the basket of "AAA American strawberries."

[ethbro]

You forgot about also shorting the eventual result of those re-packaged strawberries by buying options on bismuth subsalicylate.

[Scoundreller]

I'd be more worried about the molds (and their byproducts) being carcinogenic (e.g. Aflatoxins)