Serious financial crises are crises due to debt financing illiquid assets, not equity crises

Looking at the past, we can see that serious financial and economic crises occur when debt has financed illiquid long-term assets; if the debt is not rolled over, then there is a liquidity crisis which morphs into a solvency crisis (as was seen in the subprime crisis, for example). A fall in share prices, even if it causes a fall in demand and activity, has never by itself triggered a severe crisis, which is reassuring in the present situation.