Kudlow: Why Not Optimism?
On the housing-credit front, University of Michigan economist Mark Perry, using data from the Mortgage Bankers Association, points out that of the 46 million mortgages outstanding, only 2.04 percent were in the foreclosure process in last year’s fourth quarter. And most of those were confined to Nevada, Florida, Michigan, and Indiana.
Meanwhile, commercial mortgage delinquencies ended 2007 near record lows. And get this: Over the past year bank loans to businesses have grown by $250 billion. During the credit crunch of the early 1990s, these loans fell by $60 billion. Believe it or not, credit is still available, even to small businesses.
In the stock market, the best-performing sectors since the January 22 bottom have been transports (trucking and railroads), basic materials, energy, and industrials. These economic-sensitive areas point to a solid near-term pickup in economic growth.