It's ultra vital to understand that while the stock markets don't effect a lot of people...that they actually do.
Step back and take a look at who is getting infected - the wealthy. Those who can afford trips, nice air travel, nice hotels, fancy sporting seats, those going to fancy meetings, sports stars, movie stars. This is a virus that isn't spreading through Ghettos, (although it will), it is being spread by the luxury of having money to fly around and get infected.
Well, while we may see a drop in 25% and say to ourselves "well, so millionaire bob lost $250K, he still has $750K and will still spend", it is not really true.
Millionaire Bob has 250K in the stock market, leveraged 2-5 times against his actual bet. So when I lose 25K, he will lose 125K. or more. Over 8 Trillion has been wiped out - and most of that was placed into stocks not with cash, but with loans leveraged against assets which now must be sold off as those margins are called in.
That means hundreds of thousands of credit cards are being cancelled. Perhaps millions. Credit lined wiped out. Gone.
So, they are selling because they have to get cash - and will not be able to re-invest or spend it, because their margins are being called they have to repay. The cascade effect of all that money leaving the global economy is outrageous.
Sure, there will be a dip when it would be wise to buy up some solid stocks, but forget about that at the moment, the power of the consumer worldwide was just dealt a severe blow.
We're in a vicious cycle with no asset class left to inflate to make up for it. And no cash or credit to inflate one should we find a candidate. The only asset left to inflate that could in theory rocket would be Gold, but with JP Morgan and friends holding 10 times (or perhaps a 100) on paper the amount of Gold they can get, should those notes be converted into cash OR gold be attempted, we will see Trillions lost - and they aren't covered by FDIC.
The next crisis will be Junk Bonds and possibly the horrifying scenario if people attempt to actually convert their promise notes of Gold into the real thing. JP Morgan will disappear along with Trillions.