You have to separate what is in fact short term and transitional in nature and likely long term outcomes. I believe your long term beliefs are way off. The year 2009 helped illustrate why this is important; people went way overboard on the doom and gloom and many got caught watching the recovery from the sidelines ( or worse, shorted the hell out of the strongest aspect, US indexes ).
The ETFs going to zero is not a good sign though....that has been the source of fund flows. Another is stock buybacks which is also cancelled. These were both long term trends.