I agree with what You said. However, You can still have downward spiral even in case "everyone is talking/preparing for coming crisis". Imagine this: - China

I agree with what You said. However, You can still have downward spiral even in case "everyone is talking/preparing for coming crisis". Imagine this: - China going finally bust - honkong peg to dolar broken (financial companies there going bust) - australia mining slowdown and property market bust - australia banking woes Even though there are money on the sidelines, you can have crisis and even more money on the sidelines during few fearful quarters.