Why credit markets are "frozen," and what the "bailout" will do

Professor of Economics John Caskey provides a non-technical overview of the cause of the current financial crisis, emphasizing how a decline in housing prices can lead to a system-wide freeze in the availability of credit and a potential recession. He also discusses what the government has done to try to unfreeze credit markets (as of Oct. 10, 2008) and speculates on what the government might try to do in the future.