I agree with what You said.

However, You can still have downward spiral even in case "everyone is talking/preparing for coming crisis". Imagine this:

- China going finally bust

- honkong peg to dolar broken (financial companies there going bust)

- australia mining slowdown and property market bust

- australia banking woes

Even though there are money on the sidelines, you can have crisis and even more money on the sidelines during few fearful quarters.