I can't stop thinking that the current financial crisis is strongly linked to the oil supply shock we had for the last 18 months,
once you start having inflation, all financial instruments valuation start to go wrong. The oil supply shock put inflation back in the game, and since it came at a surprise, the shock effect was stronger than expected.
Why does inflation fucks up all financial instruments ? because the majority of those instruments valuation are based on a nominal risk-free rate + some spread or risk premium, which are fine when inflation is stable as it doesn't fuckup the real interest rate,
as soon as you introduce inflation fear or inflation, expected interest rates change and the spread risk increase, participants want to be compensated for inflation. This is equivalent to a large increase in nominal interest rates, or a rate shock, which always lead to a credit crunch. If the Fed doesn't act quickly to kill inflation fear by raising nominal interest rates, real interest rates becoming negative, and borrowing becomes a better alternative than earning interest rates. Borrowing actually becomes an incentive to finance projects with real positive interest rates as the spread widens between borrowing money and making money. This is exactly what fueled the property market. Borrowing at real negative interest rates while flipping properties at a positive rate. It was foolish not to take "free" money to turn it into positive cash flow.