A revealing look at Wall Street, the financial media, and financial regulators by David Einhorn, the President of Greenlight Capital
Could 2008's credit crisis have been minimized or even avoided? In 2002, David Einhorn-one of the country's top investors-was asked at a charity investment conference to share his best investment advice. Short sell Allied Capital. At the time, Allied was a leader in the private financing industry. Einhorn claimed Allied was using questionable accounting practices to prop itself up. Sound familiar? At the time of the original version of Fooling Some of the People All of the Time: A Long Short Story the outcome of his advice was unknown. Now, the story is complete and we know Einhorn was right. In 2008, Einhorn advised the same conference to short sell Lehman Brothers. And had the market been more open to his warnings, yes, the market meltdown might have been avoided, or at least minimized.
- Details the gripping battle between Allied Capital and Einhorn's Greenlight Capital
- Illuminates how questionable company practices are maintained and, 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 were replayed in the debate over Lehman Brothers
Fooling Some of the People All of the Time is an important call for effective government regulation, free speech, and fair play.
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About the Author
DAVID EINHORN is the President and founder of Greenlight Capital, a long-short value-oriented hedge fund, which started with $1 million under management in 1996. Over the ensuing years, Greenlight has generated greater than a twenty-five percent annualized net return for its partners. Einhorn is the Chairman of Greenlight Capital Re, Ltd. (Nasdaq: GLRE) and serves on the boards of the Michael J. Fox Foundation for Parkinson's Research and Hillel: The Foundation for Jewish Campus Life. Einhorn has pledged his entire personal share of the profits from Greenlight's short-sale of Allied and this book to charity.
Table of Contents
Allied Capital Stock Price Chart.
Introduction: The Spark of a Speech.
Part One: A Charity Case and Greenlight Capital.
Chapter 1 Before Greenlight.
Chapter 2 Getting the "Greenlight".
Chapter 3 Greenlight's Early Success.
Chapter 4 Value Investing through the Internet Bubble.
Chapter 5 Dissecting Allied Capital.
Part Two: Spinning So Fast Leaves Most People Dizzy.
Chapter 6 Allied Talks Back.
Chapter 7 Wall Street Analysts.
Chapter 8 The You-Have-Got-to-Be-Kidding-Me Method of Accounting.
Chapter 9 Fact—Or Maybe Not.
Chapter 10 Business Loan Express.
Chapter 11 Disengaging and Re-engaging.
Chapter 12 Me or Your Lyin’ Eyes?
Chapter 13 Debates and Manipulations.
Chapter 14 Rewarding Shareholders.
Chapter 15 BLX Is Worth What, Exactly?
Part Three: Would Somebody, Anybody, Wake Up?
Chapter 16 The Government Investigates.
Chapter 17 A Tough Morning.
Chapter 18 A Spinner, a Scribe, and a Scholar.
Chapter 19 Kroll Digs Deeper.
Chapter 20 Rousing the Authorities.
Chapter 21 A $9 Million Game of Three-Card Monte.
Part Four: How the System Works (and Doesn’t).
Chapter 22 Hello, Who’s There?
Chapter 23 Whistle-Blower.
Chapter 24 A Naked Attack.
Chapter 25 Another Loan Program, Another Fraud.
Chapter 26 The Smell of Politics.
Chapter 27 Insiders Getting the Money Out.
Part Five: Greenlight Was Right . . . Carry On.
Chapter 28 Charges and Denials.
Chapter 29 Charges and Admissions.
Chapter 30 Late Innings.
Chapter 31 The SEC Finds a Spot under the Rug.
Chapter 32 A Garden of Weeds.
Chapter 33 A Conviction, a Hearing, and a Dismissal.
Chapter 34 Blind Men, Elephants, Möbius Strips, and Moral Hazards.
About the Author.
Most Helpful Customer Reviews
Fooling Some of the People All of the Time catalogs the incredible events that followed the author's fast rising hedge fund and the investment community that attacked him after sticking his neck out in a speech. The investment community attached to protect its interests, which provides a good lesson in today's financial crisis. The book gives an informative look at the ins and outs of wall street, and the lengths people there will go to attack companies and individuals who attempt to uncover untoward behavior. It's a very interesting, if detailed, read and necessarily so. As an investor and fan of the financial markets, I don't typically read psychology books, but a colleague passed along The Emotional Intelligence Quick Book to me this week when we were discussing the chaos that has befallen the financial markets of late. I devoured that book! It's really great at revealing the role emotions play in ANY decision you make, and I'm a smarter investor for having read it.
Two sides to every story. However, have to admire Mr. Einhorn. Some bad guys in the mix but not all those involved with Allied and BLX deserve to be burned at the stake. If you know any of the players, it makes even more fun reading.