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Employment. >> yeah. and if you look at the labor participation rate, which is in the low 60s, the lowest in decades. people are just not participating in the workforce. they're not able to. and many just, you know, don't even want to try to look for jobs because they haven't been able to find one. >> is it true that free market economies will notwithstanding bad policies by bad politicians, will eventually right themselves? >> well, adam smith would say so, but the problem is that we have -- when government hampers and hinders the economy, it's hard for the free market to right itself. we hav...

>> it essentially means that these accommodative policies where the fed is pouring this $85 billion into the economy, that's pushing bond rates low and essentially pushing investors to the best investment in town that's stocks and that's creating the wealth effect in the stock market and keeping interest rates low. it encourages businesses and consumers to borrow money and where businesses are concerned, it encourages them to especially borrow money with the expectation that hopefully they would expand and hire so that that would eventually filter through to the job market, wolf. >> a phrase l...

The economy. how do you slow down money printing. >> neil: how about if you curb it. $58 billion a month. the idea, you know what. if you cut it down to 57 or 70? >> there is a wealth effect by the market going up. if you want to dampen that wealth effect, that is big thing. >> neil: but it's artificial? >> it's still money. >> neil: but it's propped up? >> it do lead to massive deflation inflation. >> but the hinted next month to put a timetable on this? >> no. what is so bizarre about this. this is why, you know this a joke because what we do with the markets should be reflecting the real ec...

This is an area that's been doing well month over month, up 37,000 in june. obviously, earlier on this year, we saw these record highs in the stock market. we also saw home prices rise 12% compared to last year. that gives rise to what's known as the wealth effect. so, people feel wealthier, and therefore, they go out and spend. that is certainly helping retail. another area that's doing very well is health care. basically, baby boomers requiring more and more at-home health aides. by the way, one of the fastest growing jobs in america but also one of the worst paid, which brings me to my next...

Back. fed chief ben bernanke last week only said he may start to scale back, the market's been freaking out ever since even though nothing's actually been done. it's really the stimulus program that's been propping up stocks, creating this wealth effect. besides the fed, a lot of the wild moves that stocks made today, a lot of that was also related to china because china's central bank came out today and told the country's biggest banks to get it together, stop handing out loans so freely. so now there's concern there's going to be this credit crunch, which is not only going to hurt china, the...