This is one of the most extraordinary interviews I have seen on CNBC in a very long time. David Einhorn founded hedge fund Greenlight Capital which has $7 billion under management. This guy really knows his stuff. He shorted Allied Capital in 2002 and made a fortune shorting Lehman Bros. in 2007. His largest position is in gold and he warns that the Federal Reserve is engaging in a “very dangerous long-term policy.”
When asked about BRIC and other foreign markets, Einhorn repeatedly gave an answer almost no one is willing to give on TV; “I don’t know much about that.” It is rare that we see someone confidant enough in what they do know to admit that there are things about which they do not. Perhaps self-awareness of our knowledge deficiencies is the most useful measure of intelligence.