The issue is 80% of investors are retail/ mom and pop investors. Not banks, funds, etc. Likewise most stock is purchased on the margin with loans leveraged against potential (and expected) growth of the stock. This is literally what happened to the US before the Great Depression. Not only are people losing their life savings, but they're immediately shackled to debt they have no means to pay off.

So now a larger number of brokers/banks are tied to toxic debt, which is in a quantum of state of both being/not being an asset (if you think it is the crash of 2008 wouldn't have happened). While I doubt we will see bank failures (The CPC will step in), it will resonant.