All the Markets Need Is $200 Billion a Quarter From the Central Bankers - Bloomberg

All the Markets Need Is $200 Billion a Quarter From the Central Bankers - Bloomberg: The central-bank put lives on.

Policy makers deny its existence, yet investors still reckon that whenever stocks and other risk assets take a tumble, the authorities will be there with calming words or economic stimulus to ensure the losses are limited.

A put option gives investors the right to sell their asset at a set price so the theory goes that central banks will ultimately provide a floor for falling asset markets to ensure they don’t take economies down with them.

See original work for more on this and other stories.