Code 1:
public static int fibonacci (int n){
if (n == 0 || n == 1) {
return 1;
} else {
return fibonacci (n-1) + fibonacci (n-2)
The trick is that the first call to fibonacci() doesn't return until its calls to fibonacci() have returned.
You end up with call after call to fibonacci() on the stack, none of which return, until you get to the base case of n == 0 || n == 1. At this point the (potentially huge) stack of fibonacci() calls starts to unwind back towards the first call.
Once you get your mind around it, it's kind of beautiful, until your stack overflows.