Chief Joseph Tar 'n Feathers Serial Bubbler Janet Yellen

Throughout her tenure, Federal Reserve Governor, sycophant and serial bubbler Janet Yellen  has been asleep at the switch during all the boom-busts.  For instance in 2005 she warned of a housing bubble (a must read), but said "no, no, no" to doing anything about it.  In a speech on Tuesday, she made reference (in jibberish and coded language) to the fact that "some institutions," such as pension funds, are chasing junk bond yields using leverage.

As is typical, the Fed uses mere words to address the risk of privatization of gains and socialization of losses under their watch. When they do, you can bet that once these institutions lose their asses in a market rout and sink their pensioners, the Yellens of the world will be trotted out as prophetic and "ahead of the game."  You can also know then that future generations of Americans (if there still is an America) will be asked to foot the bill.

These Ponzi schemers seem to have no fundamental understanding that the result of starving Aunt Millies with near-zero interest rates for two years has been to up the ante for gambling from Auntie's money manager.  That kind of behavioral common sense isn't taught in the ivory tower universities from which Yellen and her ilk hail. After all, it's not really the money managers money. He gets paid on and is expected to hit the bogey, which usually is an 8% annualized return. He can only do that today by leveraging on the junkiest securities available in today's Fed-induced and inflated market. The problem is that by the time the Fed gets around to addressing this, these players are all in with dynamite strapped to take the whole too-big-to-fail system down.

Monetary Monday morning quarterbacking  is a little like advising a teenager to use condoms after he has gotten two girlfriends pregnant  and contracted a nasty case of the clap that has spead around  the high school like wildfire. For showing such a farce of "leadership," Chief Joseph hereby Tar 'n Feathers Janet Yellen.