NEW YORK (TheStreet) -- Former Federal Reserve Chairman Alan Greenspan appeared on Monday morning's "Bloomberg Daybreak: Americas" to discuss the U.S. economy and give his thoughts on the possible outcome of the presidential election.
Voters will head to the polling stations on Tuesday, Nov. 8, to choose the 45th President of the United States. This has been one of the more heated election cycles the U.S. has seen and will be the first administration change since the 2008 recession.
Markets have typically been resilient when a new administration comes in. BloombergTV's David Westin asked Greenspan about any risk there might be to the market as a result of all the regulations that followed the financial crisis and if the market will have a harder time responding to the change.
"I don't think the markets understand exactly what type of future there is out there and that is causing a considerable amount of uncertainty with either possible nominee," Greenspan responded. "So I don't think this is a usual strictly analytical approach to solve this."
Greenspan referred to the current situation as "ground not covered previously," which Westin agreed with. The BloombergTV anchor noted that there are now much more "behavioral regulations as opposed to reserve requirements."
Greenspan believes this behavioral approach isn't working and that it hasn't worked since the beginning.
"If you're going back to Dodd-Frank for example, there is only one thing that is working and it's one thing that's wisely to do, was a significant increase in capital requirements for banks," he continued.