Muddy Waters misses the forest for a short tree at eHealth

There are many reasons why eHealth's revenue may be inflated. The most compelling one is that's the way executives get bonused.

Carson Block, founder of Muddy Waters Research, once told me that accounting fraud is not a sufficient thesis for a successful short trade.

Sadly, I know. Regulators don’t act quickly enough to shut down frauds, or don’t act at all, and investors big and small keep putting money in a stock that might be a fraud just to catch some momentum, play the volat…