It might sound like a silly question, but I can't come up with a clear answer. By looking at the expression, the answer should be "no", since $(-1)^2=1$ and we're in trouble.
However, if I factorize: $(x^2-1) =(x+1)(x-1)$, $x=-1$ is still illegal. But now the terms cancel out and I am left with $1/(x-1)$, which is clearly defined for $x=-1$?
What happened? Was some information lost in the manipulation or was the original expression an "illusion"? I hope my question makes sense.
There was some information lost - the division by $(x+1)$ is only valid when $x\ne-1$, since otherwise we are dividing by $0$. The function $\frac{x+1}{x^2-1}$ will have a hole at $x=-1$ (value does not exist), but is otherwise identical to $\frac{1}{x-1}$.