Recovery Indicators Are Being Ignored Wednesday, 4 Mar 2009 | 4:51 PM ET Text Size Posted By: Larry Kudlow Anchor CNBC.com As Team Obama readies its nearly $300 billion mortgage bailout a plan that at best will have only minor positive impact, and at worst will welfare-ize the housing sector even more there are recovery indicators out there that are being ignored by the pessimistic administration and its media allies. Consumer incomes, after tax and adjusted for inflation, have increased for five straight months, which is largely from the tax-cut effect of plunging energy prices. Housing affordability is at a record high. Purchasing-manager surveys are now bottoming out. Fear-based credit spreads continue to decline. The money supply is expanding rapidly. And commodity prices are bottoming. And then there's one indicator that never gets enough credit the shape of the Treasury yield curve.
