EU Economy Is Fine, America's the Problem

For the past three months, markets have been worrying about the future of countries in the European Union, and more particularly within the zone that uses the euro. The euro has fallen consistently against the dollar and euro-denominated bond yields of southern European countries have risen to heights at which financing- budget deficits becomes painfully expensive. Yet as policy responses on both sides of the Atlantic have evolved, one thing has become clear: Europe is not the problem markets think it is, and the US economy looks much shakier than markets currently believe.