The financial crisis will lead to a sharp drop in the prices of risky assets such as stock market, real estate and commodities, and a sharp decline in residents' wealth. The sharp drop in asset prices will lead to the imbalance between supply and demand in the market, the capital chain will easily break, enterprises will easily stop production or even close down, the unemployment rate will rise, and the credit of enterprises and individuals will decline, leading to an increase in bad debts of banks, forming a vicious economic cycle and forming a domino effect, thus causing large-scale bankruptcy of small and medium-sized banks, enterprises and individuals.

In order to save the economic crisis, the country will use unconventional means to stimulate the economy, so it will adopt large-scale quantitative easing monetary policy and fiscal stimulus policy, and then it will form an inflation situation, and the wealth of residents will further shrink. In the financial crisis, a country's middle class is the most vulnerable to losses, and the weakening of the middle class means the imbalance of social wealth structure, which will pose a major obstacle to the long-term economic development.

The financial crisis will cause the overall chaos in the financial market. This cycle is often an important speculative period of domestic strength capital, and it is also a favorable opportunity for international capital to attack the city. Therefore, the effective market will be destroyed, commodity prices will rise and fall in disorder, the local currency will easily depreciate sharply, the country's foreign exchange reserves will fall sharply, and the debts of the state, local governments, enterprises and individuals will rise sharply. In serious cases, developed financial institutions will take the opportunity to empty the country's wealth.

Therefore, the financial crisis will reduce the living standards and quality of ordinary people, reduce social welfare and security, and also bring unexpected disputes, such as savings losses caused by bank failures. The financial crisis is often accompanied by the rise of social discontent, the social crime rate will rise, and even serious social unrest will be caused, so the quality of life of ordinary people will be greatly reduced or even miserable during this period.

Because the financial crisis itself has the function of squeezing bubbles, the price of risky assets will drop sharply in advance. What residents should do in this period is to reduce venture capital and hold or buy precious metals such as gold to hedge financial risks. When monetary policy continues to be loose and reaches a certain cumulative effect, asset prices stabilize after oversold, so we can gradually reinvest in risky assets, such as investing in stocks and real estate, doing more commodity futures and spot, and reducing assets such as gold.