How the credit crisis affects you

When banks don't lend to each other and the credit system gets backed up, consumers have a hard time getting a loan to buy a home or car, small businesses can't expand and employees are at risk of losing their jobs. CNN's Ali Velshi explains why.

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Major investors

There are major investors, and we mean really big ones: countries, sovereign wealth funds, pension funds, hedge funds and, of course, banks. When credit is flowing smoothly, they send money between each other. They also loan money to corporations.

By Ali Velshi and CNNMoney staff

NEXT: Banks

Last updated September 30 2008: 4:33 PM ET

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