The Smart Money Will Stay Bullish On America
So far, Main Street has shown a surprising amount of resiliency given the problems of Wall Street. Even if the economy eventually succumbs to recession, as now appears more likely, it will bounce back before long. It always has.
There have been plenty of crises in the past -- the stagflation and oil-price spikes of the 1970s, the savings and loan debacle and soaring trade and budget deficits of the 1980s, the popping of the dot-come bubble and the terrorist attacks in the early 2000s -- that led many observers to predict that the United States would soon go the way of Rome.
What the pessimists ignore is that the fundamentals of the U.S. economy remain strong. Indeed, the World Economic Forum has ranked the United States as the world's most competitive economy for the last two years. (The new survey comes out next month.) Its statistics show that per-capita gross domestic product in the U.S. consistently has grown faster than in other developed economies since 1980.
Given America's record of resiliency, it would be foolish to "short" our prospects based on recent turmoil. The smart money will stay "bullish on America," even if that was Merrill Lynch's slogan before its downfall.
~Max Boot in the LA Times