Greenspan Put

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Greenspan Put

A term coined in the late 1990s describing Federal Reserve chairman Alan Greenspan's loose monetary policy. Throughout this period, Greenspan and the Fed kept interest rates rather low to encourage growth in the stock markets. Investors assumed from this policy that stocks would continue to rise and, thus, they could enter long positions and sell them at a higher price on or before a certain date, creating a put option in practice, if not in contract. While this was likely not the intent of the Federal Reserve at this time, investors used this investment strategy anyway. See also: Irrational exuberance.
References in periodicals archive ?
Bernanke put in place to help the economy recover from the worst recession since the 1930s.
Whilst estimates foretold that QE tapering was in the cards to be announced at last week's Minutes - as was an imminent end to QE altogether by mid-2014 - neither topic came up seeing as the mere anticipation of Yellen coming to power in January made Bernanke put the QE subject on pause until she adopts the strategic decision making role.
Fed chairman Ben Bernanke put markets on notice in May that "tapering" was likely this year.
Chairman Bernanke put forward a rule that adhered to the principles of my bill, and 56,000 Americans expressed support for the rules, the largest comment response ever.
Asian shares fell on Thursday as Federal Reserve Chairman Ben Bernanke put the brakes on a recent rally by curbing optimism about the strength of the U.
But should Bernanke put a damper on QE3 expectations, the yellow metal could well experience the correction that potential investors have been impatiently awaiting.