Page 13 - Wealth Effect News Today

Stock exchange to tell us. >> good morning. bad as it looks with all the red on the screen, stocks are actually off their lows of the session. you look at the dow, its down 173. it was down as much as 250 points earlier today. so it has come back just a little. front and center today as far as the worries go, china and the fed. investors are still rattled after ben bernanke said the fed could start to scale back the amount of money its been pumping into the financial system. what that did was pu...

Economy doing well relative to how terrible everyone else is doing? is there are a lot of people without jobs or wages are stagnant, and they go, wait a minute, the economy is doing well? >> its of course the latter. the job growth is anemic, personal income is not rising. our country is doing better than the other guys, in part, because bernanke has tried very hard to keep rates down, good wealth effect, housing going up. were not creating jobs. this is a false sense of prosperity, if youre one...

And your home. home prices plummeted and that makes you feel much less wealthy. until the housing market starts to rebound it will be difficult to build it back. >> heather: so we are not in recovery until that happens. >> we are in recovery the economy is growing at a slow pace, it is a soft economy. >> heather: so that is why less than half of the wealth has been reaccumulated. >> securities are not spending enough. last month consumer spending declined for the first time in a year. what happe...

Something creating the wealth effect here on wall street. shows you the kind of balancing act that the fed is facing right now. everybody wants the u.s. economy to stand on its own. they dont want the fed to pull the rug right out under from the u.s. economy too fast and that continues to be the worry. carol. >> alison kosik, reporting live from the new york stock exchange. its hard to believe, but justin biebers need for speed is getting him into a whole lot of trouble. the beebes accused of ...

The consumer sentiment and recovery housing market and demand for low interest rates a lot of these policies we have been trying to do a long time are beginning to catch and some of the things are holding us back a year or two ago are pulling together and propel us toward. we could be doing better. you dont want to suggest the economy we are in is a good one but the recovery is really it seems to me to be taking hold. >> you know what is interesting? the back to basics aspect of this. if you fee...

In the position. congress made the ridiculous tax code they have to enforce. theyre merely the accounting police. they have to sit in front of congress, and it its a mess. going to a flat tax doesnt make it simpler. >> sure it does. >> see, jonas does not want to get audited. hes the one supporter of the irs that weve got. what do you mean, not at fault? toby? >> i dont know what jonas is smoking today. if you look at the actual numbers, and whether you take the flat tax and bring it in over a t...

Also, the economy is a lot better here than it is in europe when you make that comparison. suzanne and michael. >> sorry. so what youre saying is there is substance, its not just all hot air and optimism and sentiment and all of that. there are reasons for it being where it is? or are some people worried it could go south? >> exactly. well, i mean, it wouldnt be such a bad thing to see a little bit of a pullback because as i said, some traders get worried when all you see is up, up, up. so you a...

And so everybody benefit. >> whoa, whoa, how does the companies have more money to spend? >> they do stock offering as, borrow money. >> you can raise money as a start-up company knowing you can go public at a higher valuation later. >> no, i understand that. but its not like theyre doing these stock offering a, oh, my gosh, stock is up 25%. lets do another stock offering a. those are far and few between. i dont think there is much connection. >> they could go public and do a nasdaq 5,000 situat...

Of treasuries, mortgage backed securities. thats moving interest rates done and pushing investors to invest in stocks. and many believe that the stimulus is creating the wealth effect were seeing in the market. jake? >> thank you so much. lets get the economic pulse. markets up? check. housing up? check. unemployment down? well give it a tentative check. jim, a positive jobs number. but when you dive into those numbers, 4 million people have been unemployed for six months or longer. this has bee...

Reform, you will see them be more confident as a way to knock down health care employment, and these are not happening next. >> as long as we get to the politics, were all tired with that. well get into it, weexchange. could we really hit 15,000? >> its the nice round numbers, like 15,000 on the dow. 1,600 on the s & p, creates more momentum, the wealth effect we see in the market and in turn, some analysts say it will create confidence for the american public when they see the stock market go u...