US and eurozone can both be right on economy

In recent months markets have had lots of down days. In the US and the UK, in Euroland and in Japan, the underlying worries are the same. Investors fear the recovery will falter, or at best will be slow and fitful. They also all disagree on how to cope. In the US there are worries that a continuing large deficit and more quantitative easing will not work. The patient could become inured to the same medicine, or may start to have unpleasant side effects from too much of it. Meanwhile in Euroland the worries are that public spending cuts will curb demand at exactly the time more spendin...