Do the markets care whether the U.S. fiddles while Europe burns? Apparently. This week’s 600-point nosedive by the Dow should prove (for anybody who didn’t realize it already) that America isn’t about to “decouple” from Europe, financially or economically.
For the past few weeks, a parade of smiley faces has tried to tell us that Europe’s woes didn’t matter for the U.S. markets. We, and maybe the Chinese, could keep chugging along regardless of what was happening in the EU.