The Markets Believe in American Exceptionalism
Currency, bond and stock investors are all sending the same message — ignore the messiness of democracy in motion; the US is the place to be.
The "Fearless Girl," a bronze sculpture, stands in front of the New York Stock Exchange building.
Photographer: TIMOTHY A. CLARY/AFPIt may seem strange to be talking about American exceptionalism. Just over a week ago it looked like the US government was so divided that lawmakers would fail to raise the nation’s borrowing capacity, sparking a default that would cause a worldwide economic and financial market catastrophe. But they did, albeit with little time to spare.
The episode reminded us once again that there’s often a big difference between perception and reality. The perception was that a dysfunctional government is leading the nation to economic ruin. The reality is that the US is the envy of the world — at least when viewed through the eyes of investors. The currency, bond and stock markets are all sending a similar message: America is the place to be.