so says david stockman. former director of the office of management and budget. ill be joining us to fill in details. ♪ @í0x;ñt david: better than expected jobs numbers sent interest rates soaring today. the 10-year treasury rate was up well over 8%, ending the day at its highest level since august of 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 us for some time and he joins us now. david, is this it? are we there? >> you have to draw some pretty serious conclusions when you see the bond market moveein two months from a yield of 1.6 on the 10-year to over 2.today. why should anybody be surprised. this isn't a real market. the law of supply and demand hasn't been resealed. the fed is in there -- repealed. the fed is in there with its big thumb on the scale buying half of issuing even more treasurys almost all of issue of mortgage back securities. when you have that much buying obviously prices are going to be overstated, yields are understated. davi

it can be off balance sheet or incognito bridge here's how david stockman explains it. most of this. layer upon layer of creative bid up the price borrow money against it buy some. drive hire used. it is the same thing as fractional reserve banking. no problem once you get a string going. similarly to how banks use a fractional reserve banking to expand the money supply prime broker is a bridge collateral the rules on every hypothecation very on the jurisdiction of the institutions and according to an i.m.f. working paper in the united states a broker dealer may hypothecate up to one hundred forty percent of the customer's debit balance but in the united kingdom unlimited amount of customers assets can be rehired the kade and there are no customer protection rules this is a major factor into why we see more hedge funds opt for funding in europe and the u.k. and many times the u.s. institutions assets are transferred to their subsidiaries that will allow for greater leverage member lehman brothers they hold the record for the largest bankruptcy in u.s. history with over

david stockman is less remembered that year and he calls jimmy carter's plan a control of resources in the economy and described them as prosecuting their views with the determination putting the smallness of their minds. it shouldn't be a surprise that the united states has made some progress with the resulting gridlock. but in the 1980s, oil production has plummeted and resources are becoming more difficult than congress has given up on clean energy standards and there was an occasional part of the last dozen years where energy has reemerged and become central to some of the countries biggest debates, just like this with the events in the world. asking people to reconnect including hurricane katrina and that followed a fuse under two years later by skyrocketing gasoline prices again. the second thing that happened has echoes of 1972 and begins to transform in a way that we haven't seen for years. a lot of you know the basic trends. natural gas held by fracturing and the source of energy in 2011. last year we saw a production rise capping off a four year production. renewable energy d

on april 4, booktv attended the party for david stockman it is also available to watch a booktv.org. and gloria olsen posted masters of the planet, the search for human origins. it is a fascinating look at what we know or think we know about the appellation evolution of homo sapiens. it is tied to the museum research at the museum of national history. post us or e-mail us what you read on your summer reading list. we can share your posts here on booktv. >> welcome to dover, delaware. on to dover, delaware. on behalf of comcast corporation, for the next hour we will host the book fair at the capital of delaware. .. political thought of john dickinson as it was rooted in quicker constitutions of 30. it came out of my interest in rl

david stockman, who is less remembered as the chief architect of ronald reagan's energy plan that year, calls jimmy carter's plan a fight for state control of resources in the economy and describes its proponents as prosecuting their views with a determination befitting the smallness of their minds. [laughter] it shouldn't be a surprise that with energy turned into such a prominent ideological battlefield, while the united states makes some progress, the result is mostly gridlock. by the end of the 1980s, oil production has plummeted, access to new resources is becoming more difficult, congress has begun to starve clean energy. the country largely stumbles through the 1980s and '90s with the occasional utility crisis or middle eastern war. but over the last dozen years, energy has reemerged and become central to some of this country's biggest debates. just like in the 1970s, the transformation bins with events in the -- begins with events in the world. hurricane katrina drama -- dramatizes the risk of climate change. the second thing that happens has excoes of the 1970s too. driven by