We should have learned by now that every credit – no matter how unthinkable its failure would be – has risk and requires capital. Just as trivial capital charges encouraged lenders and borrowers to overdo it with AAA rated CDOs, the same flawed structure in the government debt market encourages and therefore practically ensures a repeat of this behavior – leading to an even larger crisis.
June 3rd, 2010 | Dave Einhorn | 1 comment | ContinuedArchive for Dave Einhorn
David Einhorn is the president of the hedge fund Greenlight Capital and the author of Fooling Some of the People All of the Time.
Good News for the Grandchildren
According to the Bank for International Settlements, the US’s structural deficit – the amount of our deficit adjusted for the economic cycle – has increased from 3.1%…
June 2nd, 2010 | Dave Einhorn | 0 comments | Continued
