The financial crisis, as explained to a 14 year old, with a Pokemon analogy

Kevin: Imagine that I let you borrow $50, but in exchange for my generosity, you promise to pay me back the $50 with an extra $10 in interest.To make sure you pay me back, I take your Charizard Pokemon card as collateral...

Let's say that the Charizard is worth $50, so in case you decide to not return my money, at least I'll have something that's worth what I loaned out.

But one day, people realize that Pokemon is stupid and everyone decides that the cards are overvalued. That's right - everybody turned twelve on the same day! Now your Charizard is only worth, say, $25.

At the same time, you're having trouble paying back the $60 you owe me. So what would you rather do: try and pay me back the $60 or just default and give me your $25 Charizard?

Olivia: I'd give you the Charizard.

Kevin: Exactly. Who wouldn't? Now, the bank - I mean me - has lost $25 when I expected to make $10. What's the lesson here?

Olivia: Pokemon is dumb

Really, our economy would be in a much better state right now if financial institutions had traded in something more stable, like Meowth cards.