The separation of time scales which allows us to apply such concepts as the direct nature of the reaction or the cage effect is derived from a model Hamiltonian. The predictions of the model are compared to results of a full molecular dynamics simulation of the O + H-2 --> OH + H reaction in fluid Ar. Particular attention is given to the rovibrational spectrum due to the caged motion. The angular momentum disposal in the O + H-2 reaction and its steric requirements are clearly evident in the spectroscopy of the caged products or reactants.