The Moneyball Maverick: The Untold Story of Michael Lewis
Episode 93, Oct 31, 2023, 12:52 AM
Liar's Poker summary
"Liar's Poker: Rising Through the Wreckage on Wall Street" is a memoir written by Michael Lewis, published in 1989. The book provides an insider's perspective on the cutthroat and chaotic world of bond trading on Wall Street during the 1980s.
Lewis begins by recounting his own journey from a relatively humble background to working as a bond trader at Salomon Brothers, one of the top investment banks at the time. He paints a vivid picture of the high-stakes, ego-driven, and often outrageous culture that defined the world of bond trading.
The title "Liar's Poker" refers to a popular game played among traders, where they would bluff and gamble with various financial instruments. It serves as a metaphor for the deceptive practices and the speculative nature of the bond market during that era.
Through a series of anecdotes, Lewis highlights the greed, excess, and flawed incentives that plagued the financial industry. He describes the rise of mortgage-backed securities and the disastrous consequences of traders' reckless behavior, culminating in the bond market crash of 1987.
Alongside the colorful characters and over-the-top antics, Lewis also delves into the flawed system and exposes the underbelly of Wall Street. He sheds light on the financial jargon, convoluted deals, and the manipulative tactics used by traders and investment bankers to make quick profits.
As the book progresses, Lewis becomes disillusioned with the industry's practices and eventually decides to leave Wall Street. He leaves readers with a sense of skepticism about the morality and efficiency of the financial system and poses questions about the nature of capitalism and the role of government oversight.
In summary, "Liar's Poker" is a gripping and revealing memoir that offers an inside look into the world of bond trading on Wall Street during the 1980s. Through personal experiences and anecdotes, Lewis exposes the wild greed and questionable practices that defined the industry, raising important questions about the morality and sustainability of the financial system.
Is Liar's Poker a good book?
Liar's Poker by Michael Lewis is considered a good book for several reasons:
1. Insightful depiction of Wall Street: The book provides a fascinating and often humorous insider's look into the cut-throat world of Wall Street and the culture of investment banking in the 1980s. It sheds light on the high-stakes, erratic nature of the industry and the excessive risk-taking.
2. Engaging storytelling: Lewis, a skilled writer and former Wall Street trader himself, weaves a compelling narrative that keeps readers engaged from start to finish. The book is filled with entertaining anecdotes, larger-than-life characters, and suspenseful moments, making it a page-turner.
3. Lucid explanations of complex financial concepts: Despite being primarily a memoir, Liar's Poker offers clear explanations of intricate financial concepts, making it accessible to readers without a background in finance. Lewis breaks down complex subjects like bond trading and mortgage-backed securities, aiding readers in understanding the intricacies of the industry.
4. Critique of Wall Street culture: Liar's Poker serves as a critique of the excessive greed and lack of ethics prevalent on Wall Street. It exposes the flaws of an industry driven by profit motives, showcasing the negative consequences that arise when unchecked ambition and self-interest reign supreme.
5. Historical relevance: The book provides a historical account of Wall Street in the 1980s and the events leading up to the infamous financial crash of 1987. It offers valuable insights into the financial practices and mindset that laid the groundwork for subsequent crises, making it relevant even today.
Overall, Liar's Poker is lauded as a good book for its engaging storytelling, intriguing insider perspective, educational value, and its ability to entertain while shedding light on the darker aspects of the finance industry.
What are the chapters of Liar's Poker?
"Liar's Poker" is a book written by Michael Lewis, published in 1989. It is a semi-autobiographical account of Lewis' experiences working as a bond trader at Salomon Brothers in the 1980s. The book is divided into several parts, with each part encompassing several chapters. Here is an overview of the chapters in "Liar's Poker":
Part One: "Scipio"
- Chapter 1: Begins with Lewis describing his first encounter with Salomon Brothers and his infatuation with the firm's culture and wealth.
- Chapter 2: Lewis gets hired at Salomon Brothers and starts his training program.
- Chapter 3: Describes the culture and dynamics within the firm, including "the Big Swinging Dick" and the firm's intense rivalry with other Wall Street firms.
Part Two: "The Fat Men and Their Marvelous Money Machine"
- Chapter 4: Lewis learns about mortgage bond trading and the complex system used by the firm to trade bonds.
- Chapter 5: Introduces Lewis to the hierarchy and personalities within Salomon Brothers, including his mentor John Meriwether.
- Chapter 6: Lewis becomes a successful bond trader and experiences the competitive and high-stakes nature of the business.
Part Three: "How to Make Money Out of Those Capitalist Pigs"
- Chapter 7: Describes Salomon Brothers' involvement in the Treasury bond market and the development of the Treasury Bond Department.
- Chapter 8: Lewis discusses the rise of the mortgage bond department, particularly the team led by Lewis Ranieri.
- Chapter 9: Introduces the concept of the mortgage-backed security and its impact on the financial industry.
Part Four: "Home"
- Chapter 10: Lewis reflects on the significance of the mortgage bond market and the role it played in the 1980s financial landscape.
- Chapter 11: Describes the decline of Salomon Brothers and the firm's eventual acquisition by Travelers Group.
- Chapter 12: Lewis leaves Salomon Brothers and reflects on the lessons he learned and the legacy of the bond trading industry.
While this is a general breakdown of the chapters in "Liar's Poker," it's important to note that the book also contains several interludes and anecdotes that provide additional insight into the world of Wall Street and the bond trading industry.
"Liar's Poker: Rising Through the Wreckage on Wall Street" is a memoir written by Michael Lewis, published in 1989. The book provides an insider's perspective on the cutthroat and chaotic world of bond trading on Wall Street during the 1980s.
Lewis begins by recounting his own journey from a relatively humble background to working as a bond trader at Salomon Brothers, one of the top investment banks at the time. He paints a vivid picture of the high-stakes, ego-driven, and often outrageous culture that defined the world of bond trading.
The title "Liar's Poker" refers to a popular game played among traders, where they would bluff and gamble with various financial instruments. It serves as a metaphor for the deceptive practices and the speculative nature of the bond market during that era.
Through a series of anecdotes, Lewis highlights the greed, excess, and flawed incentives that plagued the financial industry. He describes the rise of mortgage-backed securities and the disastrous consequences of traders' reckless behavior, culminating in the bond market crash of 1987.
Alongside the colorful characters and over-the-top antics, Lewis also delves into the flawed system and exposes the underbelly of Wall Street. He sheds light on the financial jargon, convoluted deals, and the manipulative tactics used by traders and investment bankers to make quick profits.
As the book progresses, Lewis becomes disillusioned with the industry's practices and eventually decides to leave Wall Street. He leaves readers with a sense of skepticism about the morality and efficiency of the financial system and poses questions about the nature of capitalism and the role of government oversight.
In summary, "Liar's Poker" is a gripping and revealing memoir that offers an inside look into the world of bond trading on Wall Street during the 1980s. Through personal experiences and anecdotes, Lewis exposes the wild greed and questionable practices that defined the industry, raising important questions about the morality and sustainability of the financial system.
Is Liar's Poker a good book?
Liar's Poker by Michael Lewis is considered a good book for several reasons:
1. Insightful depiction of Wall Street: The book provides a fascinating and often humorous insider's look into the cut-throat world of Wall Street and the culture of investment banking in the 1980s. It sheds light on the high-stakes, erratic nature of the industry and the excessive risk-taking.
2. Engaging storytelling: Lewis, a skilled writer and former Wall Street trader himself, weaves a compelling narrative that keeps readers engaged from start to finish. The book is filled with entertaining anecdotes, larger-than-life characters, and suspenseful moments, making it a page-turner.
3. Lucid explanations of complex financial concepts: Despite being primarily a memoir, Liar's Poker offers clear explanations of intricate financial concepts, making it accessible to readers without a background in finance. Lewis breaks down complex subjects like bond trading and mortgage-backed securities, aiding readers in understanding the intricacies of the industry.
4. Critique of Wall Street culture: Liar's Poker serves as a critique of the excessive greed and lack of ethics prevalent on Wall Street. It exposes the flaws of an industry driven by profit motives, showcasing the negative consequences that arise when unchecked ambition and self-interest reign supreme.
5. Historical relevance: The book provides a historical account of Wall Street in the 1980s and the events leading up to the infamous financial crash of 1987. It offers valuable insights into the financial practices and mindset that laid the groundwork for subsequent crises, making it relevant even today.
Overall, Liar's Poker is lauded as a good book for its engaging storytelling, intriguing insider perspective, educational value, and its ability to entertain while shedding light on the darker aspects of the finance industry.
What are the chapters of Liar's Poker?
"Liar's Poker" is a book written by Michael Lewis, published in 1989. It is a semi-autobiographical account of Lewis' experiences working as a bond trader at Salomon Brothers in the 1980s. The book is divided into several parts, with each part encompassing several chapters. Here is an overview of the chapters in "Liar's Poker":
Part One: "Scipio"
- Chapter 1: Begins with Lewis describing his first encounter with Salomon Brothers and his infatuation with the firm's culture and wealth.
- Chapter 2: Lewis gets hired at Salomon Brothers and starts his training program.
- Chapter 3: Describes the culture and dynamics within the firm, including "the Big Swinging Dick" and the firm's intense rivalry with other Wall Street firms.
Part Two: "The Fat Men and Their Marvelous Money Machine"
- Chapter 4: Lewis learns about mortgage bond trading and the complex system used by the firm to trade bonds.
- Chapter 5: Introduces Lewis to the hierarchy and personalities within Salomon Brothers, including his mentor John Meriwether.
- Chapter 6: Lewis becomes a successful bond trader and experiences the competitive and high-stakes nature of the business.
Part Three: "How to Make Money Out of Those Capitalist Pigs"
- Chapter 7: Describes Salomon Brothers' involvement in the Treasury bond market and the development of the Treasury Bond Department.
- Chapter 8: Lewis discusses the rise of the mortgage bond department, particularly the team led by Lewis Ranieri.
- Chapter 9: Introduces the concept of the mortgage-backed security and its impact on the financial industry.
Part Four: "Home"
- Chapter 10: Lewis reflects on the significance of the mortgage bond market and the role it played in the 1980s financial landscape.
- Chapter 11: Describes the decline of Salomon Brothers and the firm's eventual acquisition by Travelers Group.
- Chapter 12: Lewis leaves Salomon Brothers and reflects on the lessons he learned and the legacy of the bond trading industry.
While this is a general breakdown of the chapters in "Liar's Poker," it's important to note that the book also contains several interludes and anecdotes that provide additional insight into the world of Wall Street and the bond trading industry.