Quote of the Day

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.


From Alan Greenspan, on the size of U.S. banks:

If they’re too big to fail, they’re too big.

Interesting.  On the one hand, Greenspan is really on the side of the angels here.  “I don’t think merely raising the fees or capital on large institutions or taxing them is enough,” he says.  If they’re too big, we need to just chop ’em down to size.  On the other hand, he’s also using this as an opportunity to slag his successors for creating the moral hazard of too-big-to-fail in the first place: “When push came to shove, they didn’t stand up,” he says of the decision last year to rescue Fannie, Freddie, and AIG.  But it’s pretty hard to believe that if Greenspan had still been Fed chair at the time, he would have risked allowing the financial system to melt down.  And the “Greenspan put” predates the “Bernanke put” by many years.

Still and all, it’s interesting that Greenspan, of all people, is willing to endorse an idea that’s apparently too radical for current officeholders to even think about.  It’s sort of like all those out-of-office Republicans who say they’re in favor of healthcare reform now.  I guess it’s a lot easier to buck the tide when you’re not the one holding the bag.

DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America will move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America will move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate