Wasn't that why we had the Great Depression, because everyone was buying stocks on margin (a form of credit), and when the stocks went down they were still stuck paying the original higher price that they had assured the stock broker they would pay, assuming the stock would go up, except too many stocks went down instead?
Its kind of like Footx3's friend with the over valued house that he living off the inflated proceeds of. If he loses his job, he's going to have to sell at the real price, not the imaginary one.
On the bright side, living in the woods is not that bad - at least until winter comes.