As an European I can confirm this is partly true. I wouldn't say it's completely destroyed it's soft power, but politically we do feel betrayed so whenever possible people would be looking to switch to non-US product. However, in business we're so intertwined with the US that it's hard to tell right now if there ever will be a justified switch.

In terms of pensions - I think 99.9% of us have a huge chunk the S&P, so even though we're upset I doubt there will be any movement on that front at all. Money will win in this battle.

Personally I do feel betrayed as well and for the first time in my life I've started looking for where the product I consume come from. About a third is from the US. Stopped buying them, found a European alternative.

To all the Europeans out here - let them live how they want over the pond, let's use this opportunity to promote our industries and products as well as become as independent as we possibly can given our current financial and political constraints.

No hard feelings at all, live and let live.