Wednesday, October 21, 2009

Einhorn Goes for Gold, Slamming U.S. Policies


Mr. Einhorn reportedly likened Treasury Secretary Timothy Geithner's regulatory reform plan to trying to stop terrorism by "frisking grandma and taking away everyone's shampoo."

"Although our leaders ought to be making some serious choices, they appear too trapped in the short term and special interests to make them," Mr. Einhorn said.

Last week when Federal Reserve Chairman Ben Bernanke, Mr. Geithner and White House economic adviser Larry Summers spoke in interviews and on panel discussions, Mr. Einhorn said, "My instinct was to want to short the dollar but then I looked at other major currencies - euro, yen and British pound - and they might be worse."

Mr. Einhorn added, "Picking these currencies is like choosing my favorite dental procedure. And I decided holding gold is better than holding cash, especially now that both offer no yield."

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