cursing the husband for the pain at childbirth. However, two or three years later, the scene is
repeated.
It is the same with mistakes we do for the economy or society; mistakes are oft repeated.
That is a lesson from history: we never learn.
From: The Huffington Post <dailybrief@huffingtonpost.com>
Date: Fri, May 25, 2012 at 12:25 AM
Subject: Thursday's Daily Brief: GM Recall, Warren and Brown Neck and Neck, Romney Avoids Bain, Plus Arianna Huffington, Robert Reich, Conrad Black
Arianna Huffington: Financial crises are a lot like childbirth -- they both involve a lot of pain and end up costing you a lot of money. But, after a while, you forget about all the negatives and are ready to do it again. This propensity to forget, so useful when it comes to having babies, is incredibly destructive when it comes to our economy. So why do we do it? According to John Kenneth Galbraith, it's a combination of "the extreme brevity of the financial memory" and a general ignorance of history. As a result, boom and bust cycles are repeated endlessly -- and so is the response, in which reforms are proposed but, as the public's anger -- and memory -- weakens, so does the "reform." By the time reform measures are passed, lobbying has weakened them enough to make another crisis inevitable. Exhibit A: the JPMorgan trading loss and the renewed the battle over the Volcker Rule.
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