Yellen and Powell are on the same page. This bubble in leveraged loans ($1.3 trillion!) is destined to end badly…

“there are a lot of firms that will go bankrupt” in the coming down-cycle.

Fed’s Vermilyea: Banks Are Making Same Bad Loan Mistakes as Last Two Crises

And a former Fed official put it even more directly: “As we learned during the crisis, it’s hard to overstate the capacity of banks to do dumb things, especially when there is a lot of money to be made from trying to keep the party going.”

Pick Your Debt Poison: Will Corporate Debt Be the Catalyst for the Next Recession?

One thing in corporate America is certain: If you allow companies to borrow money at close to zero-percent interest, they will. All they can, as long as they can. And woe betide anyone left holding the bag in a market that has drastically overpaid for highly risky corporate bonds.