Big crash in prices is very different to civil wars and all the other negatives. A price crash for some people is a positive, when dollar or a currency goes down in value it helps exporters in that country often. Egypt just free floated their currency, I read it was a demand by IMF or similar to help free trade. So price crash in that money maybe but it should adjust eventually, I hope its a positive in the end
The house price crash might have been bad for banks but it was a positive for those saving to buy a house. What people see as negative in a market is often a biased view, theres not much reason for a price crash to force wars and major disruption. The reason a market crash is seen so badly is when it becomes disruptive to trade and continues for far longer then it should, we are living in something of that now. From 2009 market low we have recovered in price but not cleared many piles of debt, this is largely due to government actions to subsidise and avoid loss but it has sustained the negative. I assume similar happened in 1929 and how it dragged afterwards.
If the prediction is we repeat previous major negative crashes, its really about the politics trying to force their point of view through. Two trading nations doing honest business are unlikely to choose war, its only when trade is prevented and negoiation is not possible you have these greater factors possible. The crash alone is not going to cause this
It's true that crashes are not directly causing wars and major disruptions in any case. However the probability for hostilities significantly increases when the economic situation is bad and a lot of people are affected. The crashes of the more recent history had only limited effects for the general population. While a lot of people lost their jobs, most were still able to get something to eat.
In my opinion the forthcoming crash will be far more devastating. The central bank's policy will unleash high inflation which will lead to great misery for the majority of the population.
That said, the foundations for most of the biggest individual fortunes were also laid during times of crisis. Market crashes and inflation are a disaster for those who hold the wrong asset class (fiat money) but represent a huge opportunity for counter-cyclical investors, because the market leans towards exaggeration as market participants are driven by strong emotions. So you can buy certain assets at bargain prices if you have the right timing and know what you are doing (made your analytical homework regarding the substance of the assets in question).
ya.ya.yo!