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obama says if we don't do this, we'll have another crash. isn't this what we said in the progressive movement with the fed? isn't that why the fed started under wilson? >> absolutely. the principle reason for establishing the federal reserve system was to avoid the periodic banking panics that they had before 1913. >> glenn: more than the banking panics, right? the crashes. free market system under stallen goes in waves. it will crash and it will renew itself. that's where green shoots come from, right? >> absolutely. there were the recovery from the panics was usually very fast. it was the great depression of 1929. in large part, many economists say because of the fed mismanagement, that was so long and so deep. >> glenn: what is going to happen now with this new regulation? what are we looking at with the new regulation?

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