Borrowing costs are intolerably high, a new car or major purchase is out of the question. Joe's company files bankruptcy. He takes a job elsewhere at half his prior salary. Joe's home goes into foreclosure. He and his family move in with his sister.
Stocks continue to drop relentlessly.
Joe's retirement plan is worthless. Now his family can only afford the bare essentials of life. Joe's wife loses her job. She files for unemployment, but government revenues have shrunk dramatically and benefits are reduced. Joe suffers from severe depression and spends his days watching the financial channels where a full-fledged panic unfolds in the stock and bond markets.