Financial History Does Rhyme…
Alan Blinder: Financial Collapse – A 10-Step Recovery Plan: “1. Remember That People Forget…. 2. Do Not Rely on Self-Regulation…. 3. Honor Thy Shareholders…. 4. Elevate Risk Management…. 5. Use Less Leverage…. 6. Keep It Simple, Stupid…. 7. Standardize Derivatives and Trade Them on Exchanges…. 8. Keep Things on the Balance Sheet…. 9. Fix Perverse Compensation…. 10. Watch Out for Consumers…. Twain is said to have quipped that while history doesn’t repeat itself, it does rhyme. There will be financial crises in the future, and the next one won’t be a carbon copy of the last. Neither, however, will it be so different that these commandments won’t apply. Financial history does rhyme, but we’re already forgetting the meter.”
Darn good advise. But will organizations and people take note or long remember?
H/T Brad DeLong