Falling asset prices are not a cause but a symptom. A sign that a necessary readjustment is taking place. Unfortunately, this line of thought is utterly beyond the Bank's Keynesian ideologues. No where in the Bank's report does it reveal the slightest understanding of the crisis. It is not generally understood that the policies the Bank recommends are the very policies that created the crisis in the first place.
Fiscal stimulus is simply a code phrase for inflation-funded deficits.
The government funds tax cuts and increased spending by rapidly expanding the money supply. The monetary growth is then expected to stimulate output, defined as growth. All very neat and all very dangerous. The effect of this Keynesian quackery was to create massive malinvestments, i.e., investments that could not be economically justified. Just as the Austrian school of economics predicted, this policy resulted in a financial crisis that has brought Asian countries to their economic knees.