[CulturalNgineer]

Car insurance and home insurance are relatives of 'derivatives' but are much different than the "naked" derivatives and CDO Squared instruments (2nd generation derivatives naked or otherwise).

While you're right about his error regarding the 'computer-driven' aspect as it relates to these instruments... it's a big part of the problem in flash trading and front-running to game the system.

Perhaps you'd like to take some interest in the real functions of investment.

Might be worthwhile to also investigate issues of credit-creation bias and how that's been working-out.

Free Enterprise isn't about who can be most creative in developing the most ridiculous gambling methods and disguising them as 'financial innovation'.

In overall thrust Mr. Ebert's piece is on the money... at least what there is left of it for regular folks.

Adam Smith is a good source.