Price Equity Ratios?

In violent times
You shouldn't have to sell your soul
In black and white
They really, really ought to know
--Tears for Fears

New Fed chair Janet Yellen opines that "price equity ratios and other measures are not outside of historical norms." Price equity ratios?

Zero Hedge relates this comment to one made by President Obama years back about attractive "profit and earning ratios."

As ZH concludes, government officials, Fed and otherwise, have no idea what they are talking about when it comes to economics and financial markets.

The real bubble is a bubble in public confidence in these institutions. The real question is how long before this bubble pops.