subject: Good News For The Grandchildren? [print this page] "Good News for the Grandchildren" was the name of the David Einhorn's lecture on Wednesday at the Ira Sohn Seminar in New York. I was there.
"Would you believe you're nervous that we are passing our debt on to future generations?" Einhorn started
"Well you needn't be troubled. Our generation - not our grandchildren's - must deal with the consequences."
Einhorn's investment success have profited his hedge-fund clients wealthy. He's earned them above 20% per year compounded, after fees.
Einhorn famously revealed that Allied Capital was defrauding the government. He wrote a good book about his six-year battle with Allied, called Fooling Some of the People All of the Time. Every value investors should look at it. (He initial in public declared Allied was defrauding the government on the 2002 Ira Sohn Seminar.)
Einhorn moreover "almost made it to final table" in the World Series of Poker major event in 2006. He donated his $659,730 reward money from that event for the Michael J. Fox foundation for Parkinson's Research.
After which in the spring of 2008, Einhorn in public predicted the collapse of the Lehman Brothers.
Thus he's clever, a winning investor, moreover a great gentleman. He is worth paying attention to.
Einhorn believes the United States might face a Greece-type debt situation much earlier than someone thinks (in our generation, not our grandkids). He pointed out civil servant earnings for instance of the United States problem in making just like Greece
Einhorn defined how in 2008, the average U.S. federal civilian wage including reimbursement was $119,982, when compared with $59,909 for the private employee. Moreover in case you have a government employment, you possibly can remain utilized for twenty years afterward which you will retire, getting retirement remuneration the remainder of your life (the next 40 years). Einhorn asked the sustainability of those entitlements.
Einhorn was not the only real presenter in the seminar His hedge-fund-manager peers shared their useful thoughts too. Most speakers in the seminar held a similar idea to David's.
The optimistic take was essentially, "Everyone is adaptive We'll discover learn how to adapt to these time, after that generate profits out of them. There's never been a catastrophe that you can't see coming. If you can actually see it coming, then you definately can adapt."
To invest in such a challenging time, David said to hold gold along with gold stocks and be concerned about your grandchildren later.
Like he thought, "Once push comes to shove, there is a best possibility the Fed will print currency towards point where significant inflation shows up."
by: Mark Nicholas
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