Einhorn: Shutdown 'Bad Enough,' Default Unthinkable

Oct 3 2013 | 12:19pm ET

As the U.S. government shutdown enters its third day, the Obama Administration is warning that worse could be on the horizon should Congress fail to raise the federal debt limit. Greenlight Capital's David Einhorn agrees.

Einhorn told Bloomberg Television that it is unimaginable that the debt limit would not be increased, leading to a default on U.S. sovereign debt—the first in the country's history.

"Frankly, not working this out so the government shuts down is bad enough," Einhorn said. "It doesn't seem that they tried to sit down and talk through their differences. It's a real shame. I think it is embarrassing to all of them."

Congressional Republicans have tied both the federal budget and an increase in the debt limit to a number of demands, including a delay of President Barack Obama's signature healthcare law and major spending cuts. The president and Senate Democrats have rejected those requirements as blackmail; Obama said he will not negotiate over debt limit.


In Depth

FINtech Focus: Fundbase Aims To Revolutionize Access To Hedge Funds

Jan 23 2015 | 11:03am ET

Global investment in financial technology—also known as fintech—is booming....

Lifestyle

Looking For A Hedge Fund Manager? Try Davos

Jan 28 2015 | 8:48am ET

Davos, Switzerland seems to have become the hedge fund capital of the world—at...

Guest Contributor

From Switzerland With Love: Some Hard Truths About Central Banks And Risk

Jan 23 2015 | 7:54am ET

In the wake of the Swiss National Bank uncoupling the country’s currency from...

 

Editor's Note