The CP market is often used to support on-going operations, as I understand it. There’s more direct funding than the stock market.
Basically some companies borrow from the capital markets, make a higher return than the interest rate, then pay off the creditors. So if that aspect of the CP market seizes up, or just becomes much more expensive, then the companies would likely have to downsize.
It would be interesting to know what sorts of companies employ this type of model (other than the financials.)
I do have a serious problem with the whining of the bears. They were wrong, they should own up to that fact, that doesn’t mean everything is OK. It could just mean that their timing was wrong. If it’s true that sentiment on the Street has turned overwhelmingly bullish, that is, historically speaking, a time to be extremely cautious.