It doesn't seem to be stopping people from enormous spending for luxury items. Expensive cars, vacations, etc.
It's the credit card industry where I believe you're going to see a lot of hits ending in personal bankruptcy to get out.

This won't affect people with a pile of money/assets.

The rest of it will prob end up like 2008 or worse. Lots of bankruptcies, foreclosures and Big Bank bailouts.

You want to convert your portfolio to a Roth when your portfolio is at its lowest value, here’s why:
1) your capital gains will be at its lowest and possibly get a credit on any losses
2) you will pay less taxes on your sales of stocks/funds, your selling the same # of shares but at a lower price
3) the best times you should have converted your money into a Roth was during the 2007/8 crash or the 2020 covid downturn. Since you were already down, the money in your Roth would have recovered within a few years. If you convert when the market is at its highest, you are hoping the market will go higher but in reality, the market (based on a week ago valuations), you have a better chance of a market downturn which will make your Roth suffer a bigger loss.

Why convert in the 1st place if the market is at its highest?
Say you had a $1M portfolio. If you convert that $1M, you will be in a very high tax bracket, let’s say 40%, so your Roth will start at $600k. From this point on, all your gains will be on $600k. Say you make a 10% gain the 1st year, in the Roth you will make $60k, non Roth you would have made $100k. So next year, your gains will be on $660k or $1.1M. Compounded interest will make you a lot more money in the Ira/401k, and if I do this do 6 years before I have to pay an rmd, my gains will easily pay for any taxes the occur from my rmd.