>The Greenspan Put Lives On

>As economic indicators weaken and the stock market drops, the world looked to Fed Chairman Ben Bernanke for relief, and they got it. In a speech on Friday Bernanke channeled Greenspan and let us know that he would do whatever it takes to ensure economic recovery…….the Greenspan Put lives. Given that Big Ben can’t lower interest rates anymore, he has no other choice but to print money and buy assets.

Greenspan created this boom-bust cycle by always coming to the rescue of Wall Street (called the Greenspan Put), Bernanke has continued these dangerous policies.

How far will Bernanke go? Will he destroy the currency to save Wall Street? I don’t know, but it appears that he will. We have a serious situation on our hands – Wall Street continues to be in charge, financial reform was a joke and our financial system is worse off today than ever.

Some traditions are great, the Greenspan Put is not one of them. It’s time to end the Greenspan Put, ousting Congress is not enough, we need to abolish the Federal Reserve.

Scott Dauenhauer CFP, MSFP, AIF

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