Once again, a topic we have beaten to death over the past several years, namely that US consumers spending on discretionary items has collapsed for the simple reason simply because these same consumers are forced to spend much more on staples such as housing (or since nobody can afford houses anymore, on rent) and health insurance (thanks Obamacare), has made it into the sellside, in this case the latest Greed and Fear report by CLSA's Chris Wood.

Here is the Chris Wood's delightfully simple explanation which summarizes what we have said over the past three years.

The failure of American consumption to pick up over the past year and more in the manner expected can be explained not just by increased consumer caution but also by the increasing costs of two essentially non discretionary items for most Americans. That is the soaring cost of medical care and the rising cost of rents.

 

Thanks president Obama and Janet Yellen for killing the US middle class, but it was all worth it: the S&P is at 2,100, or as Janet Yellen would say "the Fed's handling of financial crisis nothing short of magnificent."