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.

An argument can be made that risk-taking capital has been eroded off the back of regulation, BloombergTV's Jonathan Ferro said, joining the conversation. Ferro asked Greenspan if the markets are able to effectively price in risk and if not what changes need to be made.

"Well to the extent that we are withdrawing a number of highly technical issues that exist in the financial system, we've removed a lot of them," Greenspan said. "As a consequence there's less ability to respond. Unfortunately that's the politics of this. So I don't know exactly how it's going to come out but I would very much like to go back to square one."

Greenspan would like to see the Dodd-Frank Act repealed and then a large increase in equity asset ratios for all financial intermediaries. He suspects that there would be "very little else" needed to be done in a regulatory system that would not be solved by "that simple regulation."

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