Thats A Knee Slapper

I have been reading many articles saying that the US is in a much better situation than the EU. Really? The EU as a group will have a 6% deficit this year. The US is projected to run a 10% deficit. Right now foreigners are happy to fund the US deficit but that can change in an instant.

1 comment:

PJ said...

The US is better because of demographics ... we have workers, they have soon-to-be retirees. Also, they are already taxing at the Laffer limit, and can't raise any more revenue, we have a few options. Deficits are not the whole story.

That said, from an investing point of view the world is highly globalized and Europe's crash will hit US stocks as hard as European stocks.