We are sure you’re like us and just skip to the David Einhorn section when it comes to the Ira Sohn Conference notes that Zero Hedge has posted, courtesy of BTIG’s Mike O’Rourke. Here’s the take on Einhorny:
The theme of Davd Einhorn’s presentation was the curse of the AAA. Obama administration is following the same policies of the Bush Administration. The administration is reflating the economy back to 2006 levels. For the economy to recover underwater entities need to restructure their debt. The willingness for banks to negotiate in this environment depends upon where the positions are marked. The Obama loan modifications lack the most important aspect of restructuring: debt reduction. The debate in the banks was too narrow with only two options discussed- Nationalizing versus Taxpayer Bailout. There is a 3rd option, debt or preferred equity conversion to common equity. Attempt to induce debt of equity conversions without creating a downdraft in the group. Banks are not materially more solvent today than they were two months ago. Regulatory forbearance has created this rally in banks. We should be overcapitalizing the banks and direct them to restructure the debt of their borrowers. The Government spending and guarantees put the U.S. AAA credit rating at risk. US debt needs to be managed responsibly.
Einhorn goes on to nuke Moodys, his short. Good play!
Ira Sohn Conference Notes [Zero Hedge]
I think AAA is great…I got a flat the other day, I called up AAA and within 45 minutes I was on my way.
How about Ackman’s GGP call- presuming the 91 SPEs don’t get yanked out of CH11 tomorrow? Should be in the link.
Porker Stansberry is shorting things like crazy.
In Obama’s America
Debt owns you!
It’s like he’s…hedging…his position! Brilliant!
is anthrax baaad?
Anyone know where to get Einhorn’s full speech?
Great call David.
Now you just need Dan Loeb to help you craft some letters to managment suggesting that they really don’t know what the hell they are doing
Actually the best call David made was to back that scumbag fraud Rechtshaffen at Obrem….that turned out really well didnt it.
Rechtshaffen stole my money.
Time’s up…greenfags. Go back to Wisconsin.