Greenspan put

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The Greenspan put was a monetary policy that Alan Greenspan, during his tenure as chair of the Federal Reserve, exercised in response to financial crises. It was used for the first time with the crash of 1987. Though it was successful in addressing various crises, it became controversial as it led to periods of extreme speculation led by Wall Street investment banks overusing the put's repurchase agreements (or indirect quantitative easing) and creating successive asset price bubbles. The banks so overused Greenspan's tools that their compromised solvency in the 2008 financial crisis required Federal Reserve ("Fed") chair Ben Bernanke to use direct quantitative easing (the Bernanke put). The term Yellen put was used to refer to Fed chair Janet Yellen's policy of perpetual monetary looseness (i.e. low interest rates and continual quantitative easing). In the fourth quarter of 2019, Fed chair Jerome Powell recreated the Greenspan put by providing repurchase agreements to Wall Street investment...

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