Bernie asks Alan Greenspan about Too Big to Fail in 2000

[BernieforPres2016]

This video is 8 years before the TARP bailout. Starting at 3:25 or so on this video, Bernie points to the near catastrophe from the Fed orchestrated private bailout of a hedge fund called Long Term Capital Management (subject of a great book called "When Genius Failed&quot in 1998 and asks Alan Greenspan what would happen if an enormous institution like the combination of Citibank and Traveler's Insurance (whose merger was only able to be finalized after Glass Steagall was repealed) was to fail. Greenspan says that such an institution wouldn't be "bailed out", but that an "orderly liquidation" which would wipe out the investments of the shareholders in the institution and impose large losses on the creditors of the institution (neither of which happened) would be better than simply letting them collapse.

[bobthedrummer]

1. Here's a tune for the 1% that is finally a hit because we have got it together now... K&R