A quick parable to illustrate my point:
“Two campers come upon an angry bear. The first says, “I’m glad I wore my running shoes.” The second says, “you can’t outrun the bear.” The first says, “I don’t have to outrun the bear, I just have to outrun you.”
That is basically why all the US downfall predictions have not come true. Quite the opposite… Foreign countries are purchasing more U.S. securities and overall confidence on an U.S. bounce (even in real estate) is increasing by the day. Even Newsweek can see this much.
Part of this is simple economics but there is also a political component here. While Americans are turning angry against the deficit and overall confidence in government is reaching new lows, Europeans are angry because bankrupt governments need to at least pretend they care. Honestly I can’t even understand what all these Greek lefties on the streets actually think should happen. They are broke and they are blaming the world and not themselves.
So even though the bear is still there we continue to be the fastest camper.