A revealing look at Wall Street, the financial media, andfinancial regulators by David Einhorn, the President of GreenlightCapital
Could 2008's credit crisis have been minimized or even avoided?In 2002, David Einhorn-one of the country's top investors-was askedat a charity investment conference to share his best investmentadvice. Short sell Allied Capital. At the time, Allied was a leaderin the private financing industry. Einhorn claimed Allied was usingquestionable accounting practices to prop itself up. Soundfamiliar? At the time of the original version of Fooling Some ofthe People All of the Time: A Long Short Story the outcome ofhis advice was unknown. Now, the story is complete and we knowEinhorn was right. In 2008, Einhorn advised the same conference toshort sell Lehman Brothers. And had the market been more open tohis warnings, yes, the market meltdown might have been avoided, orat least minimized.
* Details the gripping battle between Allied Capital andEinhorn's Greenlight Capital
* Illuminates how questionable company practices are maintainedand, at times, even protected by Wall Street
* Describes the failings of investment banks, analysts,journalists, and government regulators
* Describes how many parts of the Allied Capital story werereplayed in the debate over Lehman Brothers
Fooling Some of the People All of the Time is animportant call for effective government regulation, free speech,and fair play.
DAVID EINHORN is the president of Greenlight Capital, which he cofounded in January 1996. Greenlight Capital is a value-oriented investment advisor whose goal is to achieve high absolute rates of return while minimizing the risk of capital loss. Einhorn is the Chairman of Board of Greenlight Capital RE and also serves on the boards of Hillel; The Michael J. Fox Foundation for Parkinson's Research; and of the Robin Hood Foundation.