There's a few variables which can make it much worse.
The first is how much of the capital expenditures are being fueled by debt that won't be repaid, and how much that unpaid debt harms lending institutions. This is fundamentally how a few bad debts in 2008 broke the entire financial system: bad loans felled Lehman Brothers, which caused one money market fund to break the buck, which spurred a massive exodus from the money markets rather literally overnight.
The second issue is the psychological impact of 40% of market value just evaporating. A lot of people have indirect exposure to the stock market and these stocks in particular (via 401(k)s or pensions), and seeing that much of their wealth evaporate will definitely have some repercussions on consumer confidence.
The first is how much of the capital expenditures are being fueled by debt that won't be repaid, and how much that unpaid debt harms lending institutions. This is fundamentally how a few bad debts in 2008 broke the entire financial system: bad loans felled Lehman Brothers, which caused one money market fund to break the buck, which spurred a massive exodus from the money markets rather literally overnight.
The second issue is the psychological impact of 40% of market value just evaporating. A lot of people have indirect exposure to the stock market and these stocks in particular (via 401(k)s or pensions), and seeing that much of their wealth evaporate will definitely have some repercussions on consumer confidence.