After LTCM

Doug Noland:

"With regard to policy implications, the Greenspan Fed emerged from the LTCM crisis resolution with an intrepid appreciation for the unparalleled power and control they now exercised over marketplace liquidity. Virtually on demand, Greenspan could incite risk-taking and leveraged speculation, both activities that would immediately add to marketplace liquidity, stimulate borrowing and risk-taking, boost asset prices, and only somewhat later stimulate economic activity."