this epic twenty fourteen bubble you could call to sovereign bond bubble with spanish bonds trading at all time highs with british gilts or sovereigns trading at three hundred year highs with american sovereign debt trading near two hundred forty year highs this is a bubble driven by central banks a coordinated effort by central banks mario drag you have a time over there d.c.b. is the guy who's buying those spanish bonds buying those european sovereign bonds increasing the balance sheet of the central bank in europe to equal the balance sheet of the federal reserve bank and the bank of england where they're taking on trillions of dollars euros yen of course bank of tokyo being the granddaddy of all this in toxic debt to the point where this too will reach its point of no return and they'll be a massive sovereign debt bubble the likes of which the world has never known before i think the e.c.b. asset purchases will bring us to the end of this bubble phase in the relatively short order well usa today on this article even though they present it with those charts and the with the misle

stocks, farms are in a bubble, what is not in a bubble?- this is a good 1 -- the world's water supply. there is a shortage of water, and we are always coming up with a way to get clean drinking water. >> that is the political issue out west. >> certainly in california. --lege grads >> that is sad. not enough people are able to buy their own homes because of quality jobs in their working part-time. >> yet employers keep saying they cannot find the right qualified candidates. >> the lesson is getting a very specific education pulls up go become a geological engineer. >> how about this one, "bloomberg surveillance" is not in a bubble. aw, thanks. >> thank you. >> adam, what are you watching? openings -- it is amazing. it is not always feel like this, scar, but we have posted 435,000 job openings, almost half a million. that is the highest since about september of 2007. it is not always feel like there are jobs and a lot of people are working part-time, but the fact is we are posting jobs. we will get that latest data coming out at 10:00. >> a

bubble issue.just stuff that is driving the price up and i tell you what there is no bubble in my house. >> the times did say a lot of this is the interest rates being so low. does the bubble have to burst before the fed takes action or will be in action caused the bubble to burst? how do you know when the bubble burst? charles: maybe bubble is the wrong word because when we think of bubble we think of something that happens inches detailing sleep, but for the most part the air seats out of these bubbles over a certain. back of time. your house doesn't go from 300,000 to 100 30,000 overnight. once the snowball starts rolling down the hill becomes a proverbial boulder and then it's hard to stop it into your point i think it's anticipation of that policy that triggers it, but it's a lingering of the policy and the fed keeping rates so low for so long when on greenspan started to raise rate you raise them i try five basis points. he waited a year to want to start and then took these tiny steps and tha

. >> two bowties could be a bowtie bubble. >> a bowtie bubble onset.o. were involved, where do you think interest rates would find themselves in this environment? ofif you look at the course history, 6% was the standard rate of interests in banks and the bond market side. i would guess the intermediate and longer term rate would be somewhat closer to 6% than 2% or 3%. >> so we are seriously destroying the market? >> i think so. one can't know of course. i would say a bubble in our midst today, that bubble would be in credit. the fed after all has given us a 0% funding cost. the taking on of a lot of corporate and speculative debt. you know, the sovereign borrowers in europe that were on the verge of default as recently as a couple of years ago, were borrowing and numbers beginning 3%. fo% and >> janet yellen has a knowledge this. she recently said there is a bubble, poetic or not, and biotechive debt, and stocks come in social media stocks -- why is it wrong for the fed to be waiting on valuation? >> i think what chair yellen was trying to do was to le

as well as an equity bubble. bubble as well as an equity bubble and so we've got stock markets which is higher than otherwise should be but the way that people have a way that fine wall street has been sort of investing that easy money in a different way then the money will sort of distribute during the housing bubble so it's going to look different the results of us going to look different and may not be the same it's not because of the same it's not because of easy money or the thousand a crisis wasn't because of just easy money but we still might wind up getting pain feeling pain in the exact same way. now paul krugman thinks the past is out to lunch basically and let me read you a quote that he writes now quote what the b. i asked is arguing is that there is some other appropriate rate defined as a rate sufficiently high to discourage bubbles and that central bank should target this rate even though it is above the selling in natural order or equivalent that the economy should be kept permanently depressed in

to use the term bubble be close to froth you know you can't really say that it's a bubble until it in the afternoon at the time would seem somewhat reasonable but there are definitely stretches in terms of valuation in the equity side and also on the risk for bonds that's where the problem really laws when you have debt and that gets written down so the problem with my perspective is that ultimately someone's going to be left holding the bag and the real question is whether or not the economy has recovered sufficiently to be able to take the associated with that and the longer the fed holds off on the laws in economic policy the worse it's going to be now yes right we really focused on subprime auto so you know obviously bubbles are good and subprime autos are good but this size that's the thing that gets made the size isn't as large a subprime mortgage crisis that we're that we saw so can you explain to me you think it's pretty detrimental and i think that it's bad but there's worse things out there you know talk to me what why do you think it's about so when you think back to what h

us trying to honk on paris how is the baltic bubble in relation to these other bubbles it shares some. features with what we see in the united kingdom and other words you have a lot of money that's actually come from the c.i.s. the former soviet union that's what's happening you get a lot feel a lot fee is top and real estate is again being inflated massively by all of this money that's leaving kazakhstan russia ukraine or budge on its so it's all hot money so how underlying economic activity is it's always lumped in with the cyprus crash the money went to lafayette so this is again creating this new housing bubble lots different than the old one the old woman as you know being financed by swedish money this one's coming from hot money from the east so in other words it has nothing to do with building productive capacity or waiting as you know wages you know there's both inflation and wages in the sector that serves. the offshore correspondent banking sector so you know if it doesn't employ enough people and it creates too much inflation and it doesn't lift wages and often short it do

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we're all hypersensitized to see and look for bubbles and call any big price move a bubble. it, stock markets are cyclical. economy is cyclical. to me janet yellen's remarks were reminiscent of greenspan's remarks and they have to talk to it a bit but it hasn't made a huge difference in what people do. >> guys, the thing is -- i agree with a lot of points that you have made. if this is a bubble and maybe we're on the way there, it's the only bubble in history that f everyone saw coming. 61% of the respondents said we're either in a fully formed bubble or right on the verge. is it likely to have a stock market bubble when more than half of professional market participants agree that we're in one or doesn't there have to be a lot more disbelief before we get even close? >> steve? >> well, i think to a large degree that's true. at the same time, you've had years of money printing. you've had years of negative real interest rates. there is, i think, some should be more concern about what that means in future years. as far as tech, look as fundamentals. when you look back 15 year

you lean against bubbles against -- instead of clean up after bubbles. i think there's more of a cleanup view at the fed. even jeremy stein was certainly not a proposal of saying we can identify the bubble. he just wanted to take into account some broader market conditions. that is what we're seeing the fed do. they are broadening out market conditions. how easy they really are. >> it hasn't stopped policy makers from opining on valuations, whether it is about social media or biotechnology. with a broad market. the fed says in that very same overall report, valuations were generally at levels not far above historical averages. suggesting that in aggregate, investors are not excessively optimistic regarding equities. >> in either case, they are not calling a bubble. the best they can do is compare with the price is now to what the long-term historical averages and say, it is higher than that. we warned you. here's something to look at. we can't do anything about it necessarily. it may be justified, but it is above average. we are watching, you watch. >> w

you can see bubbles being pumped in. and they're no ordinary bubbles. the diameter of each is less than 0.1 millimeters. they're called microbubbles. professor takashi hata has been studying the microbubbles for six years. >> translator: microbubbles are very small but have big potential, i believe. >> reporter: hata has been attracted by the unique characteristics of microbubbles. the bubbles in the left beaker are ordinary ones used in domestic tropical fish tanks. the other one contains microbubbles. ordinary bubbles are big, so soon disappear. but microbubbles stay in water longer because they are so much smaller. >> translator: microbubbles take time to disappear. that means they can dissolve oxygen in water more efficiently. >> reporter: hata thought that characteristic could help the fisheries industry. by improving the flow of oxygen to the fish. farm operators periodically use chemical drugs to kill parasites in the fish. but if there are too many fish in a pool, overcrowding can lead to a shortage of oxygen. typically, fish then die off which

asset bubbles. so over the last 50 years virtually every financial crisis has been associated with asset price bubbles as we all know. how can we distinct between asset bubbles that post systemic risk and those that do not such as the dot com bubble in the year 2000? >> well, you know, it's common to say nobody knows when there's an asset bubble and i don't buy the. i think it's very hard to know when it's going to pop, but i think anybody who didn't think there was a housing bubble prior to the crisis was just, you, my mother saw. she would comment about it. for heaven's sake, let's have some common sense. i think there are some things regulated can and should do to make sure government actions don't further have bubbles. one is i think more robust regulation that requires loans to be based on ability to repay. if you're limited business or household, they've got in, where they can pay back the loan. they're not just making a loan based on the idea that the asset is going to appreciate. we got into

i don't i don't believe that we saw these kinds of bubble boom bubble boom bubble boom cycles or were they there and they just weren't as evident. no they were much more muted we had things like that but you're right we had an economy that was recovering from the great depression recovering from world war two there was lots of of goods to make up for what people hadn't been able to enjoy in the years before so we didn't have an economy that could produce we also produced to rebuild europe and japan from the ravages of the war so you could pump money into the economy you could see it be invested in production people had jobs we had a middle class which we were very proud of then we don't talk about how capitalism develops a middle class anymore because basically we're watching the old raveling of all of that but this is now showing that it's going to produce growing bubbles and investment booms in the assets that have nothing to do with most people's lives and eventually they bid up the prices of everything to the point where you can't sustain them and then the boom becomes a bubble th

and then that burst in the housing bubble and that burst the credit bubble and that burst and now we're reinflating into the stock market bubble. i was under the impression though that things are getting better and employment is down the figures are down the economy seems to be booming car business is when you pretty good you couple of slips with pretty good. home drugs is in southern california booming where was the blood well that's how it always looks when a bubble is reinflating and the way that you know that it's a bubble rather than genuine healthy growth in the economy is that first of all the g.d.p. itself on average is not growing that much but secondly i'm much more important indicator is that the average income of working people is not growing substantially in fact it's been flat since one nine hundred eighty you know this entire era of reaganomics this is the supply side experiment has been demonstrated not to work we really in a classical economics as defined by adam smith and seven hundred seventy six and wealth of nations in that kind of updated by david ricardo and eight

i don't think that there's necessarily a bubble and. definitely a little bit of fraud what we're seeing with technology companies are is a combination of a few things one because the sarbanes oxley companies are going to market much much later the jobs act was supposed to change that we've seen a handful handful of jobs act i.p.o.'s sneak through like fusion io who went out at about a nine hundred million dollar valuation and just got bought a couple of weeks ago for one point one billion dollars taken off the market but we're seeing effectively acquisitions happen earlier and we're seeing i.p.o.'s happen later and what that means is there's a lot of room for venture capital companies now that said there seems to be a lot of what i would call dead capital following behind on these deals series c. series d. rounds where they're investing one hundred one hundred fifty million dollars in startups that are frankly just going to disappear but that's the difference between venture investors and standard investors you know you and i will look

>> we're in a bubble bubble. >> we're in a bubble bubble.new that we were in a cupcake bubble and we didn't know it until after crumbs -- >> i hear your point, that you only know bubbles when they pop, but that's not entire true. i'm not bragging, but ten times income for a house in phoenix in 2005, you knew things were insane, right? >> brian, where do you think things are insane today, everywhere? nowhere? >> it's hard to know. listen, the reality is, you can make an argument for stocks being a little bit heady or not. >> they're always going to have -- you're always going to have economic distortions somewhere. >> that's true. >> and what neil's doing is identifying many of those distortions that exist right now. >> the free agent basketball market, there's a bubble, i'm sure of it. >> does it always lead to a bust, though? that's the question. >> only for the knicks. >> yes. >> i was going to say, we'll have to ask kobe bryant. >> especially with melo going to the lakers, but we'll see. >> see you top of the hour. >> go to the lakers, pl

the senior editor of casey's extraordinary technology is telling us what he thinks about the tech bubble and work growth will come from him even though by all markets and edward harris and i are tackling your viewer feedback in our weekly a rooting interest segment she won't want to miss a moment and it all starts right now. with. our lead story today the jobs report now good news ahead of your holiday weekend here in the u.s. private sector job creation surged in the month of june with companies adding two hundred eighty one thousand new jobs now according to the bureau of labor and statistics non-farm employment and then study seasonally adjusted rate of two hundred eighty eight thousand last month and the combined gains for the prior two months were revised up now april's increased to three hundred four thousand was the strongest we've seen since january of two thousand and twelve and june also marks the best five month stretch of job creation since early two thousand and six the gains were broad based with pretty much every industry adding payrolls service sector and small businesses