In his interview with the Financial Crisis Inquiry Commission, Warren Buffett explained that the housing bubble leading to the financial crisis was fueled by a pervasive belief that house prices couldn’t decline. This belief, embedded in psychology and reality, became widely accepted by the media, investors, mortgage bankers, the public, … Read More
David Einhorn – Ignoring Macro Risks Cost Me Big-Time
During this speech at the Value Investing Conference 2009, David Einhorn reflects on a costly investment mistake during the housing bubble, attributing it not to bad luck but to flawed analysis. He dismissed warnings from Stanley Druckenmiller about the risks of a housing and debt bubble, believing timing such macroeconomic … Read More