Thursday, December 16, 2010

Greenlight Capital's David Einhorn Was on Bloomberg Televison Today

David Einhorn

Today on Bloomberg Television, David Einhorn, president of the hedge fund - Greenlight Capital - talked about the European debt crisis and the U.S. labor market. Einhorn spoke with Betty Liu on Bloomberg Television's "In the Loop." (See an excerpt of the interview below).
Milwaukee native and co-founder of Greenlight Capital, David Einhorn is well known as the investor 'who got it right about Lehman Brothers.' In talking about the current U.S. employment situation, he said "I don't think there's an obvious, easy solution to the jobs problem. If there were, we would have come upon it and fixed it. I think part of the problem is that people have the expectation that--well, if the Fed does this, or the Treasury does that, or if we cut taxes this way--all of a sudden there's going to be a tremendous recovery in jobs. In order to have jobs, I think we have to figure out what it is that creates wealth. Wealth is created not by stock prices going up and people feeling richer, wealth is created by making goods and services that are more valuable than it costs them to produce. What we need to do is think about it from a countries perspective, how is it that we can create a climate where people can create goods and services that are more valuable."
David Einhorn's book, Fooling Some of the People All of the Time, is being released in paperback. Dr. David Krause, AIM program director said, "The book is a very good read. In 2002, David Einhorn gave a speech at a charity investment conference in New York and was asked to share his best investment idea. He described his reasons why Greenlight had sold short the shares of Allied Capital, a leader in the private finance industry. Greenlight bet that the stock would decline because the company’s business was in trouble and its accounting was corrupt. He was right - and later was also accurate in his assessment concerning the trouble Lehman Brothers was going to experience. I currently have some students reading this book during winter break."  

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