Maybe, but there is a problem with this approach. Unfortunatly, politicans forget history pretty quickly (at least they act like they do). If something simila

Maybe, but there is a problem with this approach. Unfortunatly, politicans forget history pretty quickly (at least they act like they do). If something similar happens again in, say, 20 years, there will be preassure on them to do something. In this case, I predict they'll again prop up the banks. Greenspan's solution is meant to solve the root of the problem. Remove the temptation and, in theory anyway, the government will let banks fail. Additionally, if you really beleive in institutions that are "too big to fail" then you can't do this. I'm not sure if I do, and at least one person below doesn't, but maybe Greenspan does.