There is the argument that when the larger banks show signs of crisis, it is not just the wealthy that will suffer, but potentially everyone. With an increasingly inter-connected world, things like a credit crunch can ripple through the entire economy.
For example, people may find their mortgages harder to pay, or remortgaging could become expensive. For any recent home buyers the value of their homes are likely fall in value leaving them in negative equity, and many sectors may find the credit crunch and higher costs of borrowing will lead to job cuts. As people will cut back on consumption to try and weather this economic storm, yet other businesses will struggle to survive leading to further fears of job losses.
The real economy in many countries are already feeling the effects. Many industrialized nations are sliding into recession if they are not already there.
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