If you have money in the stock market, and did nothing yesterday - what exactly did you lose? The only way you lost was if you took those paper losses and turned them into actual losses by selling. If you held on and did nothing, you haven't lost or gained anything. In other words, if you panicked, you lost big bucks.
The markets are going to take a few months to sort out the toxic paper since the newly formed entity to review the toxic paper will have to analyze the paper and figure out values.
None of this means that you still can't lose money in the market at the end of the day (when you eventually sell), but most companies are going to rebound off the lows over time, and the best companies will take advantage of the changed business climate to improve their products and market share.
Other companies will be more tolerant to adverse business conditions - recession proof because they serve needs that cannot simply be ignored - food products (but not supermarkets), basic necessities, etc. There are going to be buying opportunities among the wreckage of those companies most exposed to the toxic paper.
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