Although people believe the decline in the market is attributable to North Korea firing off a few missiles, this is not true, Jim Cramer said on his "RealMoney" radio show Wednesday.

The real reason it is declining is because the market has become overbought, Cramer said.

Cramer asked his viewers to cogitate how an event overseas could affect the price of IBM ( IBM ) or make Procter & Gamble ( PG) too expensive.

There are many people in the media who know a lot about world news but not enough about financial news, he said. And these people are very quick to link overseas events to the market's decline.

This is "general Wall Street gibberish," Cramer said.

The No. 1 reason the market is going down is because it was up too much, he said. It had a huge run in which market players got too greedy and took stocks up too high. Now they have to correct it, Cramer said.

The lesson to be learned here is that when the market drops like this because of a news event, take advantage of the panic -- when other people start selling. Start picking up stocks that get cheaper, Cramer recommended.

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