it's a situation that's getting larry mcdonald's attention. why? you remember '07, there was a period like this, markets are roaring, but the biggest risk in '07 was the wall street's balance sheets were at risk because of mortgages. now, here we are all these years later. the threat really is the little guy that's exposed to the yield thirst, the yield hunt. if you look at the amount of capital that's flown into not just utilities, leveraged loan funds, high-yield funds, it's up 500% from '06 levels. so it's the most crowded trade in the world. florida, in the land of, you know, the retirees, that's a really dangerous spot. and the portfolio managers that manage that capital don't have the liquidity we had back in '06. the street balance sheets because of dodd/frank are much lower. at the end of the day, qe plus dodd/frank equals a big, big systemic risk. some point in the near future. >> weiss, what do you make of that? >> i don't disagree. we're seeing housing prices really inflate. we're seeing the consumer is now back, not exactly flush, but m

larry mcdonald saying that may be true, but the fed's action are doing more harm than good. >> larry"a colossal failure of common sense." also with us is our friend greg ip, u.s. economics editor if "the economist." he's an expert on the fed as well. larry, make your case. >> it's a deadly cocktail forming of unintended consequences that i think will force the fed out of the dual mandate. if you think about the dual mandate itself, what good is 6, 6.5% unemployment if the by-product of that outcome are socially destructive, really welcome side effe, side effects, and i think it has a lot to do with the high-yield marked. >> greg, first, i would like to hear from you on this. is it that bad? >> you know, the unfortunate truth is that we can make a full t canni iaccounting of whether policy is good or bad until it's all over, so we need to wait a few years until they've exited from this policy. i have some sympathy for what larry is saying. if there is a lot of breakage on wall street as a result of risk being taken now, we'll have some regrets. but if the alternative was to not have t