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

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, andfinancial regulators by David Einhorn, the President of GreenlightCapitalCould 2008's credit crisis have been minimized or even avoided?In 2002, David Einhorn-one of the country's top investors-was askedat a charity investment conference to share his best investmentadvice. Short sell Allied Capital. At the time, Allied was a leaderin the private financing industry. Einhorn claimed Allied was usingquestionable accounting practices to prop itself up. Soundfamiliar? At the time of the original version of Fooling Some ofthe People All of the Time: A Long Short Story the outcome ofhis advice was unknown. Now, the story is complete and we knowEinhorn was right. In 2008, Einhorn advised the same conference toshort sell Lehman Brothers. And had the market been more open tohis warnings, yes, the market meltdown might have been avoided, orat least minimized.* Details the gripping battle between Allied Capital andEinhorn's Greenlight Capital* Illuminates how questionable company practices are maintainedand, at times, even protected by Wall Street* Describes the failings of investment banks, analystsjournalists, and government regulators* Describes how many parts of the Allied Capital story werereplayed in the debate over Lehman BrothersFooling Some of the People All of the Time is animportant call for effective government regulation, free speechand fair play.

Foreword xiAllied Capital Stock Price Chart xivWho's Who xviiIntroduction to This Edition xxiIntroduction: The Spark of a Speech 1Part One: A Charity Case and Greenlight CapitalChapter 1 Before Greenlight 9Chapter 2 Getting the "Greenlight" 13Chapter 3 Greenlight's Early Successes 23Chapter 4 Value Investing through the Internet Bubble 33Chapter 5 Dissecting Allied Capital 43Part Two: Spinning So Fast Leaves Most People DizzyChapter 6 Allied Talks Back 55Chapter 7 Wall Street Analysts 65Chapter 8 The You-Have-Got-to-Be-Kidding-Me Method of Accounting 73Chapter 9 Fact--or Maybe Not 81Chapter 10 Business Loan Express 97Chapter 11 Disengaging and Re-engaging 105Chapter 12 Me or Your Lyin' Eyes? 111Chapter 13 Debates and Manipulations 121Chapter 14 Rewarding Shareholders 127Chapter 15 BLX Is Worth What, Exactly? 135Part Three: Would Somebody, Anybody, Wake Up?Chapter 16 The Government Investigates 145Chapter 17 A Tough Morning 157Chapter 18 A Spinner, a Scribe, and a Scholar 165Chapter 19 Kroll Digs Deeper 171Chapter 20 Rousing the Authorities 179Chapter 21 A $9 Million Game of Three-Card Monte 193Part Four: How the System Works (and Doesn't)Chapter 22 Hello, Who's There? 213Chapter 23 Whistle-Blower 223Chapter 24 A Naked Attack 237Chapter 25 Another Loan Program, Another Fraud 245Chapter 26 The Smell of Politics 255Chapter 27 Insiders Getting the Money Out 265Part Five: Greenlight Was Right ... Carry OnChapter 28 Charges and Denials 275Chapter 29 Charges and Admissions 283Chapter 30 Late Innings 297Chapter 31 The SEC Finds a Spot under the Rug 311Chapter 32 A Garden of Weeds 319Chapter 33 A Conviction, a Hearing, and a Dismissal 331Chapter 34 Blind Men, Elephants, Möbius Strips, and Moral Hazards 351Part Six: EpilogueChapter 35 Looking Back: As the Story Continued 359Chapter 36 The Lehman Brothers Saga 361Chapter 37 If They Asked Me, I Could Write a Book 367Chapter 38 Just Put Your Lips Together and Blow 377Chapter 39 Some Final Words to and from the SEC 387Chapter 40 The Last Word 397Glossary 401Acknowledgments 407About the Author 409Index 411