john paulson threw himself into learning about them and the ins and outs and paolo as well. the thing about credit defaults what is the cost money. they are like an insurance contracts and labor chief of 2005 they were dirty. and yet no one else was behind them very much. john paulson came from this other world, he has made worries about housing and paolo tells him about this and he says wait a second, my downside is 7% and my upside is hundreds of persons a year, that's how the work of the train. why isn't everybody doing this training? i kept asking and unfortunately the reason is -- caring. it is sort of complicated but basically means you are paying out of the beginning of the year. everyone is focused on themselves and on their competitors and to pay out and buy this insurance i want to be behind i competitor. by more than half a percentage point it might even buy a lot of this credit defaults sought, but no one wanted to buy half a percentage point behind their competitor and it's a fascinating thing to me because being an outsider backing up the truck and buying as mu

from clinton was confronted directly on the issue of brazil's independence at a town meeting in sao paolo last night. she parried by acknowledging it's a new world. >> state secretary, this is a question from the internet which, again, relates to what you just said about brazil being a global player. does it mean that brazil will have to support to you in the security council, playing like the big guys do? >> ( laughter ) well, i think brazil is a global player with an independent mind, just as the united states is. i mean, every country has to make a judgment about what is in their core interest, their security interest, their economic and political interest. and we work with brazil on many, many issues. >> reporter: president obama came into office pledging to reinvigorate u.s. relations with brazil and all the other countries in the region. >> we think that there's enormous possibilities of making progress in latin america. >> reporter: but the past year has seen the u.s. at loggerheads with many of its southern neighbors over the handling of the coup in honduras. the ongoing presence