Tuesday, June 10, 2008

Playing the don't pass line

The New York Times' Deal Professor blog features an examination of the legal issues related to vocalism (I won't call it activism) by short sellers. Of course, the case study is Einhorn v. Lehman Bros. The writer, a law professor at UConn, draws the important distinction between "talking your book" and manipulating the market and doesn't suggest that Einhorn is engaged in the latter. Comparing the strategy of Einhorn to playing the don't pass line is a pretty good analogy. He may not be popular, but he is playing with the best odds.

This blog will compare the "moral authority" of activism by long- and short investors in the next week.

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