Connect with us

Hi, what are you looking for?

Jewish Business News


Fed Chief Janet Yellen Could Drop the Greenspan ‘Put’

Yellen Greenspan

While former Fed Chairman Alan Greenspan said the notion of the “Greenspan put” was a “joke, ” current Fed chief Janet Yellen isn’t laughing; she seems serious about raising rates for the first time since 2006, according to Bloomberg. She is committed to looking at the long-term economic picture, even if this might cause some volatility in the stock market. The notion of the Greenspan put, some cushioning in case things go south, like a put option protects against a freefall in share prices, may be a thing of the past.

Alan Greenspan seems to dislike the term “Greenspan put, ” and said it has always been Fed policy to add temporary liquidity to ease shaky financial conditions. However, some economists argue that the big banks have more of a safety net than they had in the past. William C Dudley, President of the New York Fed told Bloomberg, “Let me be clear, there is no Fed put, because financial-market conditions affect economic activity only slowly over time. This suggests we should look through short-term volatility.

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at
Thank you.

The Fed believes the banks are in a stronger position than they were during Greenspan’s 18 years at the Federal Reserve. In fact, there could be an argument that his increasing liquidity might have had a direct or indirect contribution to the bubble that popped in 2001.



You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...


The Movie The Professional is what made Natalie Portman a Lolita.


After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.