Complex sentence: Kraepelin pointed out two fundamental disturbances underlying dream speech: a diminished functioning of the Wernicke area, and a diminished functioning of those frontal areas in which abstract reasoning is localized.
Split into simpler sentences: Kraepelin pointed out two fundamental disturbances underlying dream speech. A diminished functioning of the Wernicke area and a diminished functioning of those frontal areas in which abstract reasoning is localized.