who knows how much in derivatives based directly or indirectly on CMOs that are now in legal limbo land

To give an idea of the range of what has been thrown into question:

The ISDA reported in April 2007 that total notional amount on outstanding credit derivatives was $35.1 trillion with a gross market value of $948 billion (ISDA's Website). As reported in The Times on September 15, 2008, the "Worldwide credit derivatives market is valued at $62 trillion".

Putting that in perspective, the total global yearly GNP is estimated to be $67 trillion.  

Ever since I learnt about confirmation bias I've started seeing it everywhere