With all of the fiscal crises going on over in Europe, it's important to get your terminology straight. What does it mean that Ireland is having a solvency crisis compared to a liquidity crisis, for example? Ash Bennington at CNBC's NetNet has a hilarious and correct explanation of what a liquidity crisis, geared to twenty-somethings frame-of-reference. Here's the gist:
Think of it this way: A liquidity crisis is when you have to call your parents and ask them for a couple hundred bucks to help cover the rent. Short term. It's a terrible phone call to have to make. You put it off as long as you can. But while it's a pretty bad situation--there's no denying it--it could be a lot worse for you.
It gets funnier from there. Read the full story at NetNet.