David Einhorn’s recent speech calls to question government’s short-term thinking and bigger risks we may face, what is “Too Big To Fail”, and what can we expect in the future. With “Too Big To Fail” legislation making the rounds – this is a good read and while you may not agree with him, he does bring some serious issues to light.
Einhorn is a Hedge fund manager and author of the book “Fooling some of the people all of the time”. He garner some attention when he shorted Lehman stock and had a face-off with their CFO (Callan, a wall street darling) about serious discrepancies in their balance sheets and publically stated that Lehman was pretty much bankrupt. His firm is one of the few that does the heavy lifting and takes seriously the fundamentals and balance sheets of a company – he is NOT a technical trader. That being said – he analysis has some merit and worth listening to. His book shows how some companies (one in particular) can play the game (with government connections) as long as no one calls their bluff, he did! It’s a must read.