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Greenlight’s Einhorn Says a U.S. Default Is Unimaginable

David Einhorn, president of hedge-fund firm Greenlight Capital Inc., said it’s unimaginable for the U.S. to miss a deadline to raise its debt limit and default.

“Frankly not working this out so the government shuts down is bad enough,” he said in an interview today with Stephanie Ruhle and Erik Schatzker on Bloomberg Television’s “Market Makers.” “It doesn’t seem that they tried to sit down to talk through their differences. It’s a real shame. I think it is embarrassing to all of them.”

The U.S. government started a partial shutdown yesterday and must raise the debt limit this month to ensure that it has enough money to pay all its bills. President Barack Obama summoned the top four leaders of Congress to the White House today for the first high-level talks on reopening the U.S. government and raising the debt ceiling, according to a White House official.

Obama will continue to insist on a short-term spending bill and debt-limit increase without policy conditions, said the official, who requested anonymity because the information isn’t public.

Einhorn’s New York-based firm manages $9.7 billion in assets.

To contact the reporter on this story: Saijel Kishan in New York at skishan@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

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