Fooling Some of the People All of the Time, A Long Short (and Now Complete) Story, Updated with New Epilogue: A Long Short (and Now Complete) Story

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. Forward, ix Acknowledgements, xi Allied Capital Stock Price Chart, xiv Who's Who, xvii Introduction: The Spark of a Speech, 1 . Part 1: A Charity Case and Greenlight Capital 1 Before Greenlight, 9 2 Getting the "Greenlight", 13 3 Greenlight's Early Success, 23 4 Value Investing through the Internet Bubble, 33 5 Dissecting Allied Capital, 43 . Part Two: Spinning So Fast Leaves Most People Dizzy 6 Allied Talks Back, 55 7 Wall Street Analysts, 65 8 The You-Hav-Got-to-Be-Kidding-Me Method of Accounting, 73 9 Fact-Or Maybe Not, 81 10 Business Loan Express, 97 11 Disengaging and Re-engaging, 105 12 Me or Your Lyin' Eyes?, 111 13 Debates and Manipulations, 121 14 Rewarding Shareholders, 127 15 BLX is Worth What, Exactly?, 135 . Part Threee: Would Somebody, Anybody, Wake Up? 16 The Government Investigates, 145 17 A Tough Morning, 157 18 A Spinner, A Scribe, and a Scholar, 165 19 Kroll Digs Deeper, 171 20 Rousing the Authorities, 179 21 A $9 Million Game of Three-Card Monte, 193 . Part Four: How the System Works (and Doesn't) 22 Hello, Who's There? 213 23 Whistle-Blower, 223 24 A Naked Attack, 237 25 Another Loan Program, Another Fraud, 245 26 The Smell of Politics, 255 27 Insiders Getting the Money Out, 265 . Part Five: Greenlight Was Right . . . Carry On 28 Charges and Denials, 275 29 Charges and Admissions, 283 30 Late Innings,297 31The SEC Finds a Spot under the Rug, 311 32 A Garden of Weeds,316 33 AConviction, a Hearing, and a Dismissal, 331 34 Blind Men, Elephants, Mobius Strips,and Moral Hazards,351 Glossary, 357 About the Author, 363 Index, 365

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.

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.

**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. A charity case and Greenlight Capital Before Greenlight Getting the "Greenlight" Greenlight's early success Value investing through the internet bubble Dissecting Allied Capital Spinning so fast leaves most people dizzy Allied talks back Wall Street analysts The you-have-got-to-be-kidding-me method of accounting Fact, or maybe not Business loan express Disengaging and re-engaging Me or your lyin' eyes? Debates and manipulations Rewarding shareholders BLX is worth what, exactly? Would somebody, anybody, wake up? The government investigates A tough morning A spinner, a scribe, and a scholar Kroll digs deeper Rousing the authorities A $9 million game of Three-card Monte How the system works (and doesn't) Hello, who's there? Whistle-blower A naked attack Another loan program, another fraud The smell of politics Insiders getting the money out Greenlight was right ... carry on Charges and denials Charges and admissions Late innings The SEC finds a spot under the rug A garden of weeds A conviction, a hearing, and a dismissal Blind men, elephants, Möbius strips, and moral hazards Epilogue Looking back: as the story continued The Lehman Brothers saga If they asked me, I could write a book Just put your lips together and blow Some final words to and from the SEC The last word. How far will some unscrupulous companies go to keep the truth about their dealings from the American investor? Farther than the eye can see, according to this account by Einhorn, the founder of Greenlight Capital, a long-short value-oriented hedge fund. Einhorn's firm has achieved greater than a 25 percent annualized net return for its investors since 1996, proof that Einhorn can literally put his money where his mouth is. At a charity investment conference he did just that, and told the world he had become alarmed by the practices of Allied Capital and had sold it short. The result was near-chaos for Allied, but its minions retaliated through powerful connections in Washington, resulting in Einhorn being investigated by the SEC. In the meantime, Allied continues on, making Einhorn the target of its anger. In 2002, Einhorn Spoke Publicly About Allied Capital--a Leader In The Private Finance Industry--presenting It As An Excellent Short Opportunity. Einhorn Describes The Incredible Events That Followed His Speech And How Allied And The Investment Community Attacked Him To Protect The Company--and Its Stock Price. Informative And Intriguing, Fooling Some Of The People All Of The Time Details How The Current Environment On Wall Street--and The World Of Hedge Funds In Particular-- Not Only Allows For Such Behavior, But How It Protects The Companies And Attacks Those Who Attempt To Uncover Them.--from Publisher's Description. David Einhorn ; Foreword By Joel Greenblatt. Includes Index. "In 2002, Einhorn spoke publicly about Allied Capital--a leader in the private finance industry--presenting it as an excellent short opportunity. Einhorn describes the incredible events that followed his speech and how Allied and the investment community attacked him to protect the company--and its stock price. Informative and intriguing, "Fooling Some of the People All of the Time" details how the current environment on Wall Street--and the world of hedge funds in particular-- not only allows for such behavior, but how it protects the companies and attacks those who attempt to uncover them".--Résumé de l'éditeur On May 2002 the author, a hedge-fund manager, gave a speech at a charity event about a seemingly corrupt and unorthodox business development company called Allied Capital being shorted by the fund. The speech launches an ongoing battle between the fund and the company to determine who has the most accurate view of Allied's business. This book provides the hedge fund's side of the story. Fooling Some of the People All of the Time is the gripping chronicle of the ongoing saga between author David Einhorn s hedg fund, Greenlight Capital, and Allied Capital, a leader in the private finance industry. My father, Stephen, wanted to write a book before he turned forty, and at thirty-eight realized he better get started.