Previously we've shown who did (and did not) benefit from the resurgence of household net worth. Now we thought it was time to provide the context for why The Fed's obvious policy of juicing asset inflation in the hopes of engorging animal spirits among the general population and a renaissance in public spending is a total and utter wealth-inequality-driving farce. As Evergreen Gavekal indicates so clearly, the consumer isn't fooled by Fed policy; despite a major uptick in household net worth, spending remains anemic.
Simply put - 3rd time was not the charm... and as is evident the 'transmission' to spending is getting less and less effective with each new Fed-driven, cheap/free-money inspired boom (and bust)
Source: Evergreen Gavekal
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