Page 11 - Wealth Effect News Today

Far the largest share participate passively in the market through their 401(k)s, i.r.a.s and other retirement savings accounts. study authored from the national bureau of economic research showed most stock holdings are held by the rich. the top 20% of households by wealth owned 92% of stocks back in 2013 while 80% of all americans put together own the remaining 8%. when the president logs a whopping 20% gain in the dow since his election, that is mostly helping americas wealthy, not the wider a...

>> you greatly increase corporate earnings and that increases the stock market and the wealth effect is highly e, spending. >> declining individual tax rates cause people to spend more and -- >> we dont know that. we do not know that. >> i thought supply-side evidence from ronald reagan proved that? >> my friend of many years, the fact that one thing happened and another thing happened does not mean first thing caused the second thing. heather: 8 you are being fast and loose with this. there is ...

Thanks for staying with us, im bill oreilly in the personal story seeing many tonight. as you heard earlier when i talked with donald trump, the stock market is in terrible shape. and illegal immigration continues to drive mr. trumps campaign. joining us now from washington, charles krauthammer is following both stories. now, do you think the stock market and the soft economy he in general in the u.s.a. will hurt the democrats in the upcoming presidential election? >> look, if it stops where it ...

Distorted. we are looking at a lack of lower-end home inventory, the homes that investors have been buying. theres been no new construction for those homes, and frankly a lot of the folks when we hear about being underwater are in that bucket too. >> what it tends to be an issue that is ongoing? again, all all sorts of explanations and yours were dead on. would you worry that its sort of causing a bottle neck? >> well, clearly its a problem. first of all, everyone needs a place to live. rental p...

Why is this attitude surprising and what went wrong? its simple. china is getting richer. and its women are getting more educated. according to the cia the five countries with the highest birth rates in the world include the likes of niger, mali and uganda. a clear correlation these countries have some of the lowest per capita incomes in the world. the average income in niger is $800 a year. now lets flip this. the five countries with the lowest birth rates in the world include monaco, hong kong...

Look at their average incomes. china clearly aspires to be in monaco and singapores company. addition to the wealth effect, studies show that the more educated women get, the less likely they are to have more children. this has happened across the world in europe and even in traditional asian societies like south korea and singapore. china is the great historic anoma anomaly. china citizens have gotp as old as europeans well before theyve reached european levels of wealth and education and while...

To spend because theyre spend close-to-put the lights on. they are struggling to keep the ones they have. >> you know, jonas brought up the wealth everything, if the stockmarkets hire, if your house is worth more. you feel richer, so you might spend more. is that contrast true as well? >> sure it is, people look at their 401ks, they dont feel that wealth effect. so they dont spend as much money. look, we have the most dysfunctional government i think in the history of governments anywhere in thi...

Recovery we should have had four, five years ago. but i think we have to be careful because what you have is corporations doing very well. why are they doing well? falling energy prices, a lot of pressure on wages. so they havent had to raise wages. and they have done quite a bit financial engineering with very low interest rates from the fed. >> they are not -- they havent been hiring. >> the effect of that is a wealth effect in the stock market. so you have the corporations doing very well. st...

This money into the economy. at some point that has to change doesnt it george? yes. its been -- federal reserve has been extremely aggressive and futile as theyre always optimistic projections of effect of zero interest rate policy indicates. its had the effect it was designed in this sense. it has doubled since obama was inago rated. theyre going to run up the stock market. they cant get higher yields anywhere else in the stock market. that will create a wealth effect of 20% of american, 80%...

America is they dont even have an involvement here. is the wealth effect having an impact and are the people involved in this? >> the individual investor has not participated. the market is up 160% since the bottom on march 9th of 2009 at the depths of the crisis. >> they know what happened before. >> there is a post traumatic stress syndrome. two doubles between the internet and real estate and credit that happened in 2007. that really burned people. they are once burned twice shy. they sat thi...