It is sometimes astonishing how often human beings fail to learn from history. For example:

This Monday’s Wall Street Journal featured an article entitled, Dodgy Home Appraisals Are Making a Comeback. The article by Annamaria Andriotis opens, “Home appraisers are inflating the value of some properties they assess, often at the behest of loan officers and real estate agents, in what industry executives say is a return to practices seen before the financial crisis.”

In Wednesday’s Wall Street Journal an article by Ryan Tracy had the following headline: U.S. Watchdog Sees Risk of Repeated Liquidity Crunches. According to Mr. Tracy, “The U.S. financial system is growing more vulnerable to debilitating shocks as new regulations and market forces change trading habits and make some market participants less willing to smooth out volatility.”

Often the gift of prophecy is simply paying attention.

– Bob Gagliano

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