The Recession explained in a paragraph

I think I understand this recession. As far as I can make out irresponsible bankers have been lending money to people who couldn’t pay the money back, fully expecting to get £60 for every £50 lent. Then other banks came in and bought the debts, assuming that they too would get £60 for every £50 lent. This developed into a trend, resulting in debt becoming a kind of currency amongst bankers. The value of this new form of currency was based on the assumption that all the debts would be paid back in full. But they couldn’t be. When bankers finally started to realise that most of the debts would not be paid back, they saw that they had been trading with money that did not exist. And that’s when the system started to collapse. And that, in a paragraph, is why we are in the shit.