David Einhorn Warns That Fed’s Zero Rate Policy Risks 2d Financial Crisis

Einhorn has a long track record of successfully penetrating the window dressing that masked deteriorating finances of respected institutions. Most famously, in a public address in April 2008,  the hedge fund manager detailed why he was shorting Lehman Brothers, calculating the firm was leveraged 44 to 1 — at a time when publicly traded Carlyle Capital, levered 30 to 1, had just spectacularly failed and Bear Stearns had to be bailed out.

Einhorn has also bet heavily on gold, now in its tenth straight year of price increases, and also famously shorted Allied Capital, a bank whose fraudulent accounting he detailed in a book published in 2008.