Going into more detail about the potential weaknesses of fractional reserve banking, this video introduces some of the ways the economy has been engineered to address these issues, such as the "lender of last resort" and insurance...

Introducing the circumstances surrounding the 2008 bailout and financial crisis, Sal uses a simplified analogy to help students see the heart of the matter. He covers the importance of credit and credit scores, as well as what happens...

A video lecture reviewing the underlying issues that caused the financial crisis and the Paulson bailout. Video also reviews of balance sheets. Also discussed is the difference between illiquidity and insolvency. [11:25]

Sal khan explains balance sheets and the difference between illiquidity and insolvency. [11:25]