While the rich and famous hobnob in Davos at the World Economic Forum, gloom and doom seem to rule the day. On tap is a bleak view for global economies as concerns surface that the world may slip into a severe recession following the bursting of the housing bubble.

It takes some good old American muscle to brighten up the somber mood.

In an article today on Marketwatch, James Owens, CEO of global construction equipment giant Caterpillar (NYSE: CAT), cited growth in emerging economies and confidence that the U.S. will suffer no more than a mild downturn as the reasons behind his upbeat attitude.

"I think I'm considerably more optimistic than the mood here in Davos," said Owens.

CAT has reason to be optimistic. According to Marketwatch, Caterpillar reported a fourth-quarter profit of $975 million, or $1.50 a share, up from $882 million, or $1.32 a share, earned in the final three months of 2006. Revenue rose 10% to $12.14 billion.

While numerous talking heads duke it out in Davos, I'll put my chips on the CAT.

Zack Miller is the Managing Editor of IsraelNewsletter.com, a former equity analyst for a leading multinational hedge fund. Author does not own CAT.