TYB
at its core it is
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Go to bank apply for loan (X)
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Bank gets FED to print the money (X) to grant loan
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Bank gives magic money (X) to borrower
4 Bank says to borrower, pay back (X).
5.The fraudBanks says to borrower also pay back (Y) and guess what, at that time (Y) doesn't exist.
But he still got paid, so there's that.