Wealth shrinks and prices of all assets erode. In the face of a great rush for liquidity, liquidity wanes. The small guy grits his teeth and weeps each morning as he reads the stock quotes. His relatives second guess him to distraction. Worry becomes a constant companion.
Decisions become irrational.
He digs in and refuses to sell anything. His broker owns the same stocks and he agrees. Large leverage players and international money management stars take a pounding. Big money interests pull in their horns. Assets under management shrivel and sophisticated money goes to the sidelines.