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Stock investors are pricing in a Federal Reserve rescue that may never come.
The expectation of a so-called "Warsh put" — a belief that the central bank will step in to cushion equity losses — misreads how the Fed actually behaved during the dot-com crash, and what drove its decisions then.
The Myth of the Greenspan Rescue The dot-com era has become shorthand for central bank salvation, but that reading is wrong on the facts.
Alan Greenspan, Fed chair at the time, was following policy rules — not engineering a floor under portfolios.
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