He and I might be revisiting those events again soon in somewhat different occupations to our more sedate academic lives then.) There are a few other reasons to suspect that the sell-off, particularly in fixed income, could be relatively violent when it comes. First, there are a number of investors buying assets on the presumption of a level of liquidity which is not there.
As I said earlier, this is not evident when positions are being put on, but will become readily apparent when investors attempt to exit their positions. If you are a buyand-hold investor focussing on the return on your investment, then secondary market liquidity is not really an issue (though it might affect your mark-to-market valuations on the way through).