economy versus stockmarket correction, page-30

Ask a lowly rated company who is trying to raise debt right now if things have changed or not, I think they might say they have. Also ask someone in the lowly "sub prime" category in the U.S. who wants a mortgage if things have changed and I think they may say that they have. It all may be caused by perception but the facts are that it is more difficult to raise debt now than it was only a few months ago and therefore some liquidity has been stripped from markets. Markets had previously been rising partially on the available of cheap debt which is now not so readily available.

The market may well be over-reacting and maybe now is the time to buy, but to argue that nothing has changed and that the U.S. housing market is in fine shape is a bit far-fetched.