The 2008 Financial Crisis Explained
Civics 101
00:00
Susie Homebuyer's Loan Gets Sold Two Ways
Bob Bank buys Susie homebuyer's loan from Janet Wall Street. Because the loan comes with a fee, aka an interest rate, Bob Bank will make a profit. The second time it is sold, or we should say, part of it is sold. It's in a big bundle with a bunch of other loans. So Bob Bank gets money from Janet Wall St and Janet Wall Street gets money from Alistair Investor.
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