Could Europe and Asia take up the slack caused by a severe slowdown in US economic growth? The French and German economies performed so well during the second quarter that some now believe that the eurozone has finally overcome its growth crisis. Moreover, it may even be able to decouple from the US during a US recession, if it took one or all of the three following steps: first, switch economic activity from exporting goods to producing domestic services, while importing more goods from the US; second, cut interest rates aggressively; third, allow governments to run large fiscal deficits.

You might want to add that the tooth fairy should visit overnight and put piles of cash under the pillow. The truth is that there is no way the eurozone could decouple from the US in the present economic cycle. On the contrary, your average European may find a US recession more painful than your average American.