I think the Europeans have problems just as bad as the Americans, but it looks different because of national organization. Most of the problems in America are

I think the Europeans have problems just as bad as the Americans, but it looks different because of national organization. Most of the problems in America are in California, Florida, and Nevada. If these were separate countries rather than separate states, then the situations would look more similar with some having crushing problems (like Iceland and Britain) and others seeming relatively unscathed locally but affected by the global nature of the downturn. European banks have taken a huge beating, and there have been multiple bailouts. I also consider it likely that there are still unacknowledged problems in other banks that seem healthy so far. The pain filters down more readily to average Americans and Brits because they were the ones borrowing money for houses they couldn't afford and because continental political systems have stronger social support systems. I expect that it will likely take the European economies longer to recover than the Americans unless the US government borrows so much money that it starts to affect its de-facto credit rating.