Is the world bankrupt?

The markets have recovered from the S&P credit warning on US debt reasonably well but the deficit  they face is trulystaggering. Let's face it however,the US is not going to defult on its obligations but positive progress needs to be made very soon or political infighting in the US could caue the whole pack of cards to fall,if no agreement is reached on Obama's deficit reduction plans

Interesting that current equity markets can handle the sheer volume of negative news without going into meltdown mode