“Greenspan Put” Returns
It seems the market believes that the infamous “Greenspan Put” is now back in the form of the “Bernanke Put”. What the term refers to is essentially that the FED will support whatever it takes to keep the market-makers in control. It is the behavior that led to the bubble-crash sequence and is part of the current bubble-crash buildup.
Yesterday we saw a shot across the bow on short-term interest rates but today’s headlines fed by the market-makers say “no, rates are headed lower and Goldman Sachs states that they believe that the QE2 will eventually reach 2 Trillion dollars”. So at the moment the markets will mark time awaiting the next FED meeting.
And not to miss Friedman’s comments yesterday: