Today, June 22, at the age of 100, one of the legendary American bankers, Alan Greenspan, who led the Federal Reserve System (Fed) of the United States for a record 18.5 years (from 1987 to 2006) under four presidents, has passed away.
He reportedly died from complications of Parkinson's disease.
The term "Greenspan put" originated from his name. This is what the markets called his unwritten policy of always coming to the aid of investors. In the event of a sharp drop in stock prices, the Federal Reserve would quickly lower interest rates and inject liquidity, effectively insuring the markets against a deep crash.
At the same time, many economists blamed him for the 2007–2008 crisis. Despite his iconic status during his lifetime, after his departure from the Federal Reserve, economists placed some of the blame for the Great Recession on him.
It was noted that his long-standing policy of "cheap money" (low rates) and active promotion of deregulation in the financial sector created ideal conditions for inflating the housing bubble, which later burst with catastrophic consequences.
Greenspan himself later partially acknowledged the error of blind faith in the self-regulation of markets.
