Greenlight Capital's David Einhorn was speaking today at the 5th Value Investing Congress in New York City.
Two years ago he appeared as a highlight lecture of the show, and laid out his reasons for shorting Lehman Brothers stock. Needless to say there was quite a bit of attention to what he had to say today.
Here are some highlights:
1. A very bleak outlook for the US economy
2. US has a lack of political will to adopt needed financial reforms.
3. Right now he would like to hold gold rather than cash because "gold benefits from poor fiscal policy."
4. Buying long dated options on much higher interest rates in the US and Japan
5. Singled out GE as thwarting financial reform due to their intense lobbying efforts.
Transcript of David Einhorn's presentation.
"In the Incarnation the whole human race recovers the dignity of the image of God. Thereafter, any attack, even on the least of men, is an attack on Christ, who took on the form of man, and in his own Person restored the image of God in all. Through our relationship with the Incarnation, we recover our true humanity, and at the same time are delivered from that perverse individualism which is the consequence of sin, and recover our solidarity with all mankind."
Dietrich Bonhoeffer