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It's a pretty simple equation. that's what's going on. >> gretchen: yesterday, wasn't there -- or two days ago, wasn't the fed going to print money and not change the rates? >> right. listen, the fed is like the old china watchers, they figure out what the chinese government was doing. here is the thing, they're going to change it at some point. that's when the average investor has to worry about. when the fed changes direction, when they give any hint, you really do have to get out of stocks because then the dow will go down. this is purely correlated to interest rates and when those interest...

But, yet -- yet we see records being broken here on wall street. why is that? well, one of the big reasons because the fed has its hand in billion of mortgage backed securities and treasury bonds. what's that is doing is moving interest rates lower. and investors are saying i'm not going to make any money in the bond market, the best game in town is the stock market. you're seeing investors move into stocks, moving their money, creating this wealth effect on the big board today. >> that's a good thing for people with lots of money, but maybe not such a good sign for others who don't have lots ...

Small business growth, of hirings growth, they are worried about tax, abouthealth care. >> eric: wall sthreet -- look the dow jones is shooting through the roof there. yet, at the same time, a lot of people out of work, under employed, not worked enough, not paid enough. it's a struggle. so why that dichotomy. >> eric: a lot of times, wall street is an indicator of the economy. i am not sure that that is true. but we have two good things going for us. wall street and the housing market. the housing market is improving. people start to feel a little bit more wealthy when those two things are tr...

I say only, compare that to february. 14,000 government positions lost. and in january 9,000. yet to see the full impact of those spending cuts. so this today, on the plus side. wall street, the plus side, the fed expected to continue with stimulus money, pouring into the market, pushing investors, trying to create the wealth effect, at least after today, but interesting going from a jobs reading in february, where we struggle to find anything bad in that report, to a reading in march that doesn't have a whole lot of good in it. >> alison kosik, thank you so much for that. >> right back with m...

Would actually answer the question in an educated and informed way and not go for the jugular. the only answer is yes and no. >> that's definite. >> of course the stock market benefits everyone through their 401(k) plans that they're invested in, through the wealth effect, through improved corporate profitability, through the consumer confidence numbers. yes, the rising tide does lift all boats. but if it was only that simple. unfortunately, you know and i know even if ali velshi doesn't know, it is not that simple because in an era when so many people who are directly invested in stocks are s...