What is a liquidity crisis and why are so many afraid of such a scenario on financial media outlets? What about credit crunch situations, (why) are those dangerous? Understanding these two terms properly by watching this video explanation will undoubtedly make it possible for you to become a more effective financial media content consumer. Fortunately for you, it's anything but a Herculean task, as this video will take you all the way from the two definitions to a comparison which outlines the key differences between the two. As tempted as you may be to use the two terms as if they are somehow interchangeable, it is important to point out that there are significant differences between a liquidity crisis and a credit crunch. As a bit of a rule of thumb, "liquidity crisis" is the broader term, with all credit crunches being liquidity crisis types... but not the other way around :) As explained in this video, we are dealing with two terms that are anything but difficult to understand, as you will hopefully agree after watching it :)