| Good News For The Grandchildren? |
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| Written by Greg Matthews |
| Wednesday, 23 June 2010 17:52 |
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"Good News for the Grandchildren" was the title of David Einhorn's talk on Wednesday in the Ira Sohn Seminar at New York. I had attended the meeting.
"Good News for the Grandchildren" was the title of David Einhorn's talk on Wednesday in the Ira Sohn Seminar at New York. I had attended the meeting. "Do you feel you're worried that we're passing our debt on upcoming generations?" Einhorn began... "Anyhow you need not worry. Our generation - not our grandchildren's - have to deal with the consequences." Einhorn's investment success have made his hedge-fund people rich. He's profited them over 20% for every year compounded, after fees. Einhorn famously revealed that Allied Capital was defrauding the government. He wrote a fantastic book regarding his 6-year battle with Allied, called Fooling Some of the People All of the Time. Every value investors must look at it. (He first publicly stated Allied was defrauding the government in the 2002 Ira Sohn Seminar.) Einhorn moreover "almost made it to the final table" at the World Series of Poker most important event in 2006. He gave away his $659,730 reward money from that occasion for the Michael J. Fox foundation for Parkinson's Research. And then in the spring of 2008, Einhorn in public predicted the fall of the Lehman Brothers. Hence he is intelligent, a winning investor, also a superb guy. He's worth listening to. Einhorn thinks that the America can experience a Greece-type debt situation much prior to somebody thinks (in our generation, not our grandkids). He described civil servant salary as an case for the U.S. crisis in making just like Greece... Einhorn explained how in 2008, the common United States federal civilian salary with reimbursement was $119,982, when compared with $59,909 for the non-government employee. Moreover in case you have government work, you can still remain employed for twenty years after that you can retire, receiving retirement remuneration the remainder of your living (the following 40 years). Einhorn asked the sustainability of these entitlements. Einhorn was not the only real spokesman at the seminar... His hedge-fund-manager peers exchanged their useful ideas as well. Most speakers at the seminar held the same idea to David's. The optimistic take was essentially, "Everyone is adaptive... We'll work out find out how to adapt to these times, as a consequence generate profits from them. There's never been a catastrophe that you cannot see coming. If you're able to see it coming, in which case you can adapt." To invest in this difficult time, David said to own gold plus gold stocks... and worry about your grandkids afterward. Like he believed, "When push comes to shove, there is a good chance the Fed will print currency to the point where significant inflation shows up. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Gold Market Monitor is a specialized newsletter for timing the Gold Market that shows its members the best time to invest in gold bullion and when to exit to the safety of cash.Start your 60-day trial to the Gold Market Monitor which uses an exclusive gold timing strategy to help its members safely profit from underlying trends in the gold market. |