Some highly-  4  BIS Review 59/2007  leveraged private pools of capital may be unable to ride out bouts of very high turbulence if they are compelled to sell assets to meet margin calls or withdrawals, and by so doing, amplify the initial shocks. The losses would be sharper and correlations would be higher for assets in which markets quickly become shallow.
This worked as intended,  2  providing a backstop against the negative feedback loop, as the financial sector absorbed the shock to the real economy rather than exacerbating it.