When this column was written, the smart money was once again saying that the bad times were behind us. “Nearly seven years after the housing bubble burst, most indexes of house prices are bending up,” David Wessel wrote in The Wall Street Journal in July. “Nearly 10 percent more existing homes were sold in May than in the same month a year earlier, many purchased by investors who plan to rent them for now and sell them later, an important sign of an inflection point.”
n the summer edition of the house magazine for Markit Group Ltd., a credit-default swap pricing firm, Bruce Kasman, head of economic research at J.P. Morgan, explained why he believes the American economy will triumph over “persistent lacklustre growth.” Kasman identified three hopeful trends: 1) “A competitive corporate sector that is willing to hire,” 2) “Consumer behaviour has turned neutral,” and 3) “Housing turns from drag to lift.” But in the battle for hope, it’s no surprise that President Barack Obama has gained the highest ground.
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