There's so much sentiment about "our market's not fixed until...

There's so much sentiment about "our market's not fixed until subprime is fixed". Come on, this is ASX discussion and most of the talk seems to be about the Fed, Dow, US$, etc and all the arguments towards a bear market are about US credit problems.

Our stock indexes are directly derived from our share prices, which from a sane point of view should be derived from their future earnings, which right now are looking fine for many sectors excluding financials and listed property. What's happening in the US should be of secondary concern to our markets yet we are hanging on every piece of news we can get about these debt problems.

Subprime is an issue for financial institutions. The US housing problems are an issue for the US economy which can have spillover effects on us but nothing that warrents such panic and fear...?

Does anyone else feel we should be taking a bit of a step back here and stop focusing all market sentiment on American banks?

This is probably a naive point of view... discussion welcome.