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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, it's 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 it's been pumping into the financial system. what that did was push interest rates lower, created this big wealth effect in the stock market. doctor we saw the dow...

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? >> it's 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. we're not creating jobs. this is a false sense of prosperity, if you're one of the millions of people that's been able to find a job. >> so our economy is supposedly doing ...

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 happens, the wealth effect, how wealthy you feel based on your home and your retirement plan and all of t...

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 don't 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. it's hard to believe, but justin bieber's need for speed is getting him into a whole lot of trouble. the beebes accused of burning rubber through his neighbor, and some are coming after him. eric dickerson tweeting "i li...

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 don't 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 feel confident that the value of your home is recovering and that you can sell your home, if needed, y...