You've just found out why your previous boss wasn't doing such a good job. She had a crap boss and now you have that crap boss.

Your old boss probably knew what was happening, she possibly doesn't even hold malice towards you. She's hopefully plotting to get back at your current boss (her ex boss).

Start looking for a new job. This place isn't for you. Let it fall without you there. Your current boss can only hide it for long and you'll be much better off not being there when it all implodes.