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Look at their average incomes. china clearly aspires to be in monaco and singapore's 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 they've reached european levels of wealth and education and while china is not as rich as south korea or singapore it has higher increasing female literacy, the ra...

To spend because they're 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 don't feel that wealth effect. so they don't spend as much money. look, we have the most dysfunctional government i think in the history of governments anywhere in this world and their policies have fuelled the middle class. look, workers went from manufacturing t...

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 haven't 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 haven't been hiring. >> the effect of that is a wealth effect in the stock market. so you have the corporations doing very well. stock market going up. and, therefore, lots of people who own stocks feeling wealthier than they did...

This money into the economy. at some point that has to change doesn't it george? yes. it's been -- federal reserve has been extremely aggressive and futile as they're always optimistic projections of effect of zero interest rate policy indicates. it's had the effect it was designed in this sense. it has doubled since obama was inago rated. they're going to run up the stock market. they can't get higher yields anywhere else in the stock market. that will create a wealth effect of 20% of american, 80% of direct beyond stocks and trickle down to everyone else. that's the theory. the problem is ...

America is they don't 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 this out and 95% of the gains approved of the top 1% of the households. they are not participating. th...