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Better than expected jobs number sent interest rates soaring today the ten year treasury rate was well over 8% ending today at its highest level since August 2011 up 22 basis points.
Could this be the beginning of the bond bubble bursting former budget director under.
President Reagan David Stockman has been warning about this for quite some time and he joins us now so David is this -- are we there.
Well I think you have to drive some pretty serious conclusions -- you -- the bond market move.
In a matter of two months from a yield of one point -- on the ten year you know over two point seven today why should anybody be surprised.
But this isn't a real market as the ball supply and demand hasn't been repealed -- bad is in the air massively with -- big bump on the scale.
Why you know half of the new issue or even more of treasury.
As well as almost all of the new issue of mortgage backed securities.
So when you have that much -- obviously.
Prices are going to be -- -- dated -- -- -- don't want the bad start paper he won that -- opt.
The money -- which has been doing respect tears running now obviously that lost supply demand is going to come back.
-- eight -- is going to reset at much higher rational.
Sustainable levels -- at the Smart people in the market it's pretty mad out.
They've been in a leveraged carry trade anyway they're dumping the -- exactly as we've been saying for quite some time -- but we're in for a huge.
Adjustment relocation at this location and I think it's gonna spread to other markets over a period of.
There are now David I have to admit to a demolitions think that I have whenever -- -- because I love to make you mad -- level when you go off on Iran.
And nothing is gonna make you -- -- when I'm about to say so listen up -- Bernanke.
Success because -- what he's tried to do was to taper off.
While not causing -- strong market reaction when you look at -- the day.
There -- 22 basis points up on the on the ten year yield huge spike I've seen a spike in interest rates like this a long time well over 8% and yet the market was up 440 points in the Dow.
So Bernanke was right he was successful he's he's he's tapering.
And at the same time the market but it not only is -- not ten -- but it's going way up.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- This was a terrible record because internally.
It was all part time jobs this same old story again.
Under the 30000 part time jobs rested bars -- -- -- -- and can't they just beat the average -- on those 90000 a year he could hardly get by -- that the real issue is bread winner throughout the construction.
And you but -- it.
I understand that I and I -- I agree with -- it's it's in in real terms it's it's a horrible report what it means for the economy's bad and this is the worst recovery.
That we've had since we're we're tried really -- -- all of that but.
Honestly aren't you surprised that the market pop so high today when interest rights also -- so high today.
Well I don't try to predict this pop art it dated -- because I think.
It is basically.
Monetary heroin addict.
Ladies or as being one of the -- they'll be -- these -- Oh win this stock market figures out that the world economy is now slowly down dramatically but I think Europe.
Japan and everybody in between that we're not create jobs that unemployment.
And he will be GDP growth this border is likely to be one or down at best.
That the Fed is done not that you're that released -- risk asset.
You know I -- adds that in the stock market fell overboard Betty resist -- Fall after five years of expansion that we had after two -- suited to those seven.
If you look at these job numbers they're almost identical part time jobs created.
-- -- stock market and other financial bubbles are.
Inflated they collapse the job is to -- here.
He is the upper income stop spending and then we start all over again the bad is a dangerous destructive -- -- delusional.
David Davis sucked when it's -- sharp Sony and I just wanted to ask that question and that was enjoy speaking to you -- but I ask you and we talked about -- last time.
On the air -- when you look at what you were speaking about in the as the fact that the economy the global economy is gonna fall -- -- that we're not prepared for this.
The fat though Ben Bernanke -- continued to pump money into the system the -- they have proven and shown over and over again David.
They are not going anywhere when it comes to employment when it comes.
I mean this -- -- -- for a long time.
Course I think that they've shown over and over they'll keep briefed late in the bubble because their -- mind.
Until it finally collapses of its own weight that happened with dot com in 2000 we had eight economic dislocation they've read related.
We have the housing bubble its collapse in 208.
We had the entire collapse of the -- speech bubble.
And the economy went down again and what.
But we're now in this third bubble reflation of this century that bad doesn't know -- where it's run by dangerous people.
And the only.
You know supporters that there are all the people out -- -- -- speculating.
On the wrist yes that the Fed keeps pushing higher.
As a result of these -- policy analyst bill they're not paper yet whether they start that ever.
We'll find out but by 85 billion upon the -- on its IP networks yet.
-- worry here by that this so called recovery.
Just by every rule of sound monetary and financial policy ever thought.
By mankind before 2000 -- if you want to believe.
-- Bernanke who's been wrong on every call you've ever made who's flying by the seat of his pants.
Who's scared to death of all of the boys and girls that he -- in the stock market if you -- particularly in the past.
-- I don't I think there's just a huge disaster.
Alert -- Somewhere around.
-- David commodity that -- you like Ben Bernanke.
I see we've ever what I guess that David Stockman former OMB director wonderful Levy and David -- thank you have a good weekend here has -- saying.
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