New age version of the "Greenspan put"

benjamen

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http://money.msn.com/investing/can-the-central-banks-keep-us-safe-jubak.aspx

"Wonder why European stocks and sovereign bonds haven't collapsed, even though we're contemplating a Greek default (an official one this time), the wreck of the Spanish banking system and another downgrade of France's credit rating? Because of the belief that if worse comes to worst, the European Central Bank can print unlimited amounts of money."

"Wonder why the Standard & Poor's 500Index ($INX 0.00%), is stubbornly hanging around 1,340, even as worries mount about a slowdown in U.S. economic growth? Because of a conviction on Wall Street that if the recovery is in real danger of faltering, the Federal Reserve will launch a third program of quantitative easing that will pump money into the economy (and the financial markets)."

Discuss!
:popcorn:
 

pmbug

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Come and see the moral hazard inherent in the system! Help! Help! I'm being repressed!

 

bushi

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"Wonder why the Standard & Poor's 500Index ($INX 0.00%), is stubbornly hanging around 1,340 (...) the Federal Reserve will launch a third program of quantitative easing that will pump money into the economy (and the financial markets)."
This quote (part in bold) should read:

"will pump money into the financial markets, (and some scraps in the economy)."
 
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