Are we there yet?
The knock on effects are less predictable and will come later in the crisis. A lot of lower income workers are going to be hit hard as service sector takes a big hit. Those workers tend to spend all their income, so every dollar lost there translates to another dollar the broader economy loses.
That's where the Minsky moment will happen IMO.
I'm not an expert, but there's lots of money in index funds too, and those might be getting sold as well. The other first order obvious thing being people will want some cash.
A lot of people have been conditioned to "buy and hold"... And the retail brokers have been pushing hard to prevent clients from selling.
My broker (Fidelity) went so far as to change the home page to exclude the very nasty graphs that show huge market declines.
Callooh! Callay! Something to sponge up the Global Savings Glut!
There's lots of capital with nowhere to go, hence bonkers real estate prices, wacky startups getting funded, overpriced assets and low bond yields.
There's also of people without much capital who want to do things like buy cars and houses or start businesses.
These things aren't mutually exclusive. The capital is largely held by a small number of people. Most people don't have any or not very much.
Most capital can be readily exchanged for cash, hence it can be referring to as "liquid assets".
Where wealth comes from is an interesting question, but not especially relevant to the topic at hand.
This is completely relevant to the Minsky moment, because it is the illusion of wealth created by inflated asset values that leads people to take excess risks.