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 percent 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 Hub.com)
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 US
- 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.
Read more: http://www.businessinsider.com/the-us-is-the-new-focus-of-worry-2012-7#ixzz20sxPCInT