She is now the likely choice of Dems and Obama will pick her. Please read her speech given in 2005 at the HEIGHT of the bubble proposing that monetary policy could mitigate any negative economic consequences of a housing collapse, and arguing that the Fed had no role in preventing further housing distortions: “First, if the bubble were to deflate on its own, would the effect on the economy be exceedingly large? Second, is it unlikely that the Fed could mitigate the consequences? Third, is monetary policy the best tool to use to deflate a house-price bubble? My answers to these questions in the shortest possible form are, ‘no,’ ‘no,’ and ‘no.’” http://www.frbsf.org/our-district/press/presidents-speeches/yellen-speeches/2005/october/housing-bubbles-and-monetary-policy/ Your president.