The idea that emotional investors moving large amounts of money can single-handedly cause recessions is naive, even if it is comforting. The world has been using ZIRP for a long time. This policy has led to overinflated stock prices and a significant number of worthless loans held by regional banks, now collapsing at a rate similar to the 2008 crisis. When equity assets lose value, companies buoyed by those previous values have to reduce their spending because they would not be able to raise enough money by selling those assets, and they'd otherwise end up underwater or going bankrupt.