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jfuqua
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Joined: July 26th, 2002, 11:41 am

"Fooling Some of the People All of the Time" David Einhorn

December 13th, 2010, 3:13 pm

This was published several years ago but I just read about it about his investigation into Allied Capital. I've not seen any rebutal but when combined with "No One Would Listen: A True Financial Thriller" by Harry Markopolos, is becomes pretty clear that the SEC, SBA, government lawyers and many others that are suppose to investigate fraud----don't. They say they will but don't---probably unless it is really big, will help their reputation and get them in the papers. Supposed investigative reports, major newspapers such as the WSJ also will not touch these stories---or take the companies "word for it." But investor also won't question management as long as dividends are steady or improving, they produce reports that look good but ignore problems, and "answer questions" even if the answers are wrong and meaningless. As Einhorn quotes Richard Pryor's story about what to say if you get caught in bed with a woman, not your wife, "Deny, deny, deny."
 
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"Fooling Some of the People All of the Time" David Einhorn

December 14th, 2010, 9:01 pm

money, power, secret, lie, sex ... life, i guess.