Europe's Pain Is U.S. Gain
[Financial Analysis and Commentary]</br></br>Doubtless America would be better off if Europe got its house in order. Last year, the euro-zone sovereign-debt crisis hammered confidence, particularly on Wall Street. But there are ways that Europe's woes actually are providing a boost to the U.S.</br></br>First, Europe's weakening growth -- alongside a Chinese slowdown -- has sapped global demand for commodities. Lower raw-material prices are helping cut company costs and cap inflation. That oil prices have been moving sideways despite Iran threatening to close the Strait of Hormuz is a minor miracle. Americans can take a moment to thank their friends in Europe when gassing up the SUV.</br></br>Meanwhile, the 10-year Treasury yield is hovering doggedly around 2%. Lately, that seems less to do with the Federal Reserve's pledge to keep rates ultralow through next year than it does with nervous foreign investors rushing into dollar-denominated debt as they seek a safe haven.</br></br>Low U.S. interest rates have helped bolster the availability of credit, supporting demand for everything from capital equipment to cars to washing machines to -- wait for it -- even houses.