Can someone explain to me how banks made money during the '08 recession?
The way I see it is down payment was decreased to the point where blacks and Mexicans were able to buy houses that they really couldn’t afford. I know the banks lend out a lot of money that would not be payed back. How did they profit from this? I heard that a third party would buy these loans, such as Lehman Bros., and then trick investors into investing money into things that had a fake triple A rating. But then Lehman Bros. went bankrupt, yet it still made money. How is that so?