When the assets that banks hold as capital reserves falls in value substantially it's quite bad for the entire economy. See this NYT article from 2011 when the

When the assets that banks hold as capital reserves falls in value substantially it's quite bad for the entire economy. See this NYT article from 2011 when the market was worried about Italy: https://www.nytimes.com/2011/11/10/world/europe/euro-fears-spread-to-italy-in-a-widening-debt-crisis.html https://www.nytimes.com/2011/11/10/world/europe/euro-fears-s...