They sold mortgages/notes ON houses. AND then took the houses that defaulted and sold them.
They made money on the loan
They made money on the write off
They made money on the sale of real property after
They also made money betting on the loans failing
An interesting thing that people seem to overlook, money doesnt disappear. It moves, but doesnt disappear.
In 08 the money moved, the economy WAS COLLAPSED, and it wasnt because of subprime loans. That money was never lost
I dont know if I am explaining myself well, but every dollar spent, goes to someone else who spends it.
These banks and mortgage companies, didnt exactly "lose"
My only regret was, not seeing the return growth as fast as it came.
The paper pushers banked the fuck out.