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Bailey McCann, Opalesque New York:

David Einhorn's Greenlight Capital Funds posted a positive third quarter of +9.4%, according to a letter to investors obtained by Opalesque. The US-based hedge fund is up overall on the year +13.2%. The firm overall is believed to have over $7bn in assets.

In the letter, Einhorn blasted the US Federal Reserve saying that he expects to see another recession and that the Fed has announced "desperate measures in non-desperate times." He goes on to say that, "central bankers have been on a money printing spree," and that when the US does go into a recession federal and monetary officials will have few tools to deal with the downturn.

In terms of the broader global economy, the letter expresses concerns about the slowdown in Asia and the disappearance of global corporate earnings growth. He notes that while the ink in central bank printing presses may be "endless," the market tolerance for this global economic dynamic will not be.

Einhorn is incredulous at assurances from Fed Chief Ben Bernake that easing will continue even if global economic conditions improve. He writes that this view seems to suggest that cutting back the current monthly $40bn spend on mortgage backed securities would be considered unnecessary tightening, regardless of the risk associated with creating yet another bubble.

Greenlight's views on the economy were echoed by some of his cohorts today at the Buttonwood Gathering, currently underw......................

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