Alan Greenspan.jpgThe Godfather of the housing crisis, Alan Greenspan, believes the big banks that feasted on his policies are effectively out of control. So, what to do about the banks gone wild? How about hitting them where it hurts- right in the wallet?

“I don’t think merely raising the fees or capital on large institutions or taxing them is enough,” Greenspan said. “I think they’ll absorb that, they’ll work with that, and it’s totally inefficient and they’ll still be using the savings.”

Probably right. There are enough outlets for banks to pass on those costs they’d hardly notice. Greenspan is a pretty cerebral guy though. He must be able to find a clever way to solve the too-big-to-fail issue while paying close attention to the recent delicate stabilization of the big banks amidst an environment of populist outrage and politicians foaming at the mouth for the opportunity to teach banks a lesson they’ll never forget.

U.S. regulators should consider breaking up large financial institutions considered “too big to fail,” former Federal Reserve Chairman Alan Greenspan said.
“If they’re too big to fail, they’re too big,” Greenspan said today. “In 1911 we broke up Standard Oil — so what happened? The individual parts became more valuable than the whole. Maybe that’s what we need to do.”

For the banking crucifixion squads, irrational exuberance may be back.
Greenspan Says U.S. Should Consider Breaking Up Large Banks [Bloomberg]

Comments (35)

  1. Posted by guest | October 15, 2009 at 11:58 AM

    Please don’t use “banking” and “crucifixion” in the same sentence. It pisses us Gentiles off.

  2. Posted by guest | October 15, 2009 at 11:59 AM

    We’re going to hit you where it hurts…
    In the dick!

  3. Posted by guest | October 15, 2009 at 12:03 PM

    He wants his precioussssss…..

  4. Posted by guest | October 15, 2009 at 12:05 PM

    Greg -
    Have you ever heard “run on sentance. Fifty One fucking words there Pal. You are illiterate. And a douche bag.
    Love,
    Mom

  5. Posted by guest | October 15, 2009 at 12:05 PM

    Nosferatu.

  6. Posted by guest | October 15, 2009 at 12:11 PM

    Does anyone else find completely annoying people that constantly update facebook with the minutae of their stupid lives? i cannot take it anymore

  7. Posted by guest | October 15, 2009 at 12:13 PM

    Dear Mr. Greenspan,
    Thank you for your interest in joining our “Five Dollar Footlong” marketing campaign. While we are skeptical that you could, in your words, “totally fuck up that Strahan pussy,” we do agree that the attempt would create great buzz for the company. Unfortunately, we have to decline your offer as we do not want to confuse our customers as to the price of the footlongs.
    Sincerely,
    Jared Fogle
    PS Please keep in touch, we may call you back in the event of inflation

  8. Posted by guest | October 15, 2009 at 12:18 PM

    I actually never noticed the sixth figure…

  9. Posted by facebook commenter | October 15, 2009 at 12:26 PM

    what i find most annoying is people who’s updates exclusively relate to every little detail abotu their child and/or being a mother. its horrifying that these people have nothing to comment on other than staying at home and changing diapers. so obnoxious.

  10. Posted by guest | October 15, 2009 at 12:28 PM

    @7, I bet all the fellas think you’re a real cut-up at the office. fucking douche.

  11. Posted by Lowly Assistant | October 15, 2009 at 12:35 PM

    Making a difference, one click at a time (which is to say, enlarge).
    http://copyranter.blogspot.com/2009/10/latest-from-american-apparels-crack-ad.html

  12. Posted by guest | October 15, 2009 at 12:37 PM

    “Kali Ma!…KALI MA!”

  13. Posted by guest | October 15, 2009 at 12:39 PM

    Yes, we know you love your children, you do not need to post how much you love your children every day.

  14. Posted by Anal_yst | October 15, 2009 at 12:43 PM

    I’ve been known to write in stream-of-consciousness, but 50-word sentences are a bit ridiculous, especially when they could be cut down to

  15. Posted by guest | October 15, 2009 at 12:44 PM

    Why is Woody Allen screaming?

  16. Posted by guest | October 15, 2009 at 1:02 PM

    when c is broke up in2 lil peacez, i wud like to pwn the depositxors, pl33z. kthxnbai!

  17. Posted by guest | October 15, 2009 at 1:04 PM

    He looks so_______________ in that picture!

  18. Posted by guest | October 15, 2009 at 1:11 PM

    He looks so Godfatherly in that picture.

  19. Posted by guest | October 15, 2009 at 1:12 PM

    He looks like the old Jim Cramer in that picture!

  20. Posted by guest | October 15, 2009 at 1:16 PM

    Count them,5 …. I got 5 fingers up Bartiromo’s ass.

  21. Posted by guest | October 15, 2009 at 1:20 PM

    @20 oh yeah…i got 6 – count’em – 6 fingers

  22. Posted by HAM05 | October 15, 2009 at 1:21 PM

    @20 6 dude, 6

  23. Posted by guest | October 15, 2009 at 1:24 PM

    @20 – I got my entire foot up in dat.
    CG

  24. Posted by NotNasser | October 15, 2009 at 1:30 PM

    “If they’re too big to fail, they’re too big,” Greenspan said today. “In 1911 we broke up Standard Oil — so what happened? The individual parts became more valuable than the whole. Maybe that’s what we need to do.”

    Seriously people — I know the six fingers thing is a barrel of laughs, but be serious for a sec and help me out. Is Greenspan really trying to say, in the above example, that the break-up of standard Oil rendered the oil industry rational and efficient forever after? No troubles since?
    Didn’t his book say that the Iraq War was started largely to save that industry’s a$$?

  25. Posted by guest | October 15, 2009 at 1:33 PM

    @ 16 – I miss Hax0r economist

  26. Posted by guest | October 15, 2009 at 1:40 PM

    @24 you came to the wrong place if you’re looking for “serious”
    But just to humor you, he’s referring to how, within a year and a half of the standard oil breakup, the combined market cap of the broken up companies was double what Standard Oil’s had been.

  27. Posted by guest | October 15, 2009 at 1:48 PM

    @24
    Here’s what we need from you big guy. Hit the Back button a few times. This should return you to The Huffington Post website. Serious discussion from a left wing (or right wing for that matter) perspective not appreciated here.

  28. Posted by highlyconfident | October 15, 2009 at 2:26 PM

    @24 I fit my entire lubed up head in that ass; however I was promptly told to remove it because I am apparently a tickler.
    -D. Bove

  29. Posted by NotNasser | October 15, 2009 at 4:10 PM

    #27
    My “perspective” is anarcho-cap. Both right wing and left wing at the same time. Which makes me perfect for Dealbreaker, but for my sporadic outbreaks of sobriety.

  30. Posted by polizeros | October 15, 2009 at 4:15 PM

    Even a stopped clock is right twice a day

  31. Posted by NotNasser | October 15, 2009 at 4:16 PM

    #26,
    “he’s referring to how, within a year and a half of the standard oil breakup, the combined market cap of the broken up companies was double what Standard Oil’s had been.”
    Thanks. And the gasoline was a lot cheaper, too. And the industrialized world became dependent on the cheapness of the stuff, like an addict needs his fix to stay affordable, and just like the US in the 1990s and again inthe middle of the noughts became dependent on the cheapness and easy availability of credit.
    The addict’s motto is always, “what can go wrong?”
    And there is Greenspan, the great enabler, talking about how we can enable again.

  32. Posted by guest | October 15, 2009 at 6:26 PM

    Not a bad post, Greg.

  33. Posted by guest | October 15, 2009 at 9:28 PM

    U.S. regulators should consider breaking up large financial institutions considered “too big to fail,” former Federal Reserve Chairman Alan Greenspan said.
    Alan, asshole; it is you who allowed too big to fail, deregulation, conglomerate institutions, global banking and the offshore gig. WTF?

  34. Posted by guest | October 16, 2009 at 9:17 AM
  35. Posted by guest | October 16, 2009 at 9:48 AM

    Translation: “John Paulson said I couldn’t cash my advisory board check unless I came out against the banks today.” Alan “the lapdog” Greenspan

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