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The 6 Biggest Busted Bets of 2012

As pundits and politicians rush to sew the year up into a neat little bundle, we decided to look at 2012 from a slightly different angle. Here is our list of the year's worst bets -- six developments that seemed like sure things in January, but were bust by December.

Jamie Dimon Quickly Filets the London Whale's Costly Trades

After all the furor surrounding JPMorgan Chase's $2 billion-plus loss on a massive derivatives bet, it now looks like it mya have been "tempest in a teapot" after all. JPMorgan has already exited 70% of the "London Whale" positions that got the bank into hot water.

Credit Default Swaps: Still Here, Still Able to Wreak Havoc

JPMorgan Chase's rapid $2 billion trading loss reportedly involved credit default swaps -- the same investments that played such a large role in the financial crisis. Here's why credit default swaps still pose such a threat to the U.S. economy.