Greenspan is a nut and Bernanke is, well, a nutty professor. They're both stooges of corporate America. They're always behind the curve. They both like to talk a lot but when it comes down to actually taking proactive measures, they're both dumbass to the n-th degree.
For example, this whole notion that without the banks, the economy will freeze up is just plain bullcrap. First of all, if all the stupid idiotic moronic banks were allowed to fail, then new banks would RAPIDLY replace them. It does not take much to start a bank and there would be people salivating to enter the vacuum. Second of all, since the Federal Reserve plays loose with its own rules of conduct (buying up asset backed securities for example), how about they allow companies that need short term financing to come directly to them instead of to the stupidly moronic banks? So instead of propping up the idiotic banks that deserve to die, they instead keep the credit markets alive by giving short term loans to Chipotle Mexican Grill or Home Depot. Then the stupid ass banks die and this country becomes stronger and greater. What we have now is just pathetic and is guaranteed to limp along for many many years, or maybe even implode with much greater force than 2007-2008.
Be that as it may, he does have a point. The notion of "too big to fail" should not be used as a linchpin. Community banks should assume greater role in the future. Only way this can happen is to dissolve Federal Reserve, which is more or less made up of Wall Street firms.
Well, if you watched what happened to the world financial markets after Lehman went R.I.P, you would also know that no answer is required.