Europe Is Over. Now It's All About The US

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Photo: USS Hanson

Critical point here from Jefferies David Zervos. People have stopped talking about Europe. All they want to talk about is the U.S.:I was then in NYC for meetings Tuesday where there was a continued lack of interest in the European situation. As we went through May and June, the Greek election, the Spanish bank bailout and the EU leaders meeting were the only topics up for discussion at client meetings. At least 90 per cent of the time was spent on the ELA, Target2, a Greek exit, the Spanish banks and a federal banking union. If the Fed was even mentioned, it was in relation to what it might do in response to a further deterioration Europe. But, in nearly all the meetings since the EU communique release (except Dallas), the discussion was centered on the US – the August 1st FOMC meeting, the fiscal cliff, the election, the poor employment data and the disinflationary trends. At least for US and Asian clients, European issues have been squarely moved to the back burner since early July!

(You can find more Zervos at

On BloombergTV right now, Strategas’ Jason Trenneter is basically saying the same thing. All the concern is about how the economy is freezing ahead of the uncertainty.

So suddenly there are all kinds of reasons to talk about the U.S.

  • The fiscal cliff is a constant source of discussion.
  • Declining retail sales.
  • All of Wall Street is taking down its GDP forecasts.
  • The election.
  • The FOMC

As Zervos puts it, Europe is so early July.

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