The Moneyball Mindset: Unraveling the Financial World with Michael Lewis
Episode 93, Nov 01, 2023, 12:53 AM
What is the story of Liar's Poker?
"Liar's Poker" is a non-fiction book written by Michael Lewis, published in 1989. The book portrays Lewis's own experience working as a bond salesman for Salomon Brothers, a prominent Wall Street investment bank, during the 1980s.
The story follows Lewis as he starts his career in the competitive and high-stakes world of bond trading. He provides an insider's account of the culture, practices, and excesses prevalent in the financial industry at that time. Lewis introduces readers to the colorful personalities he encountered, including his colleagues, managers, and traders.
The central theme of the book revolves around the game of Liar's Poker, a gambling game played with dollar bills that Lewis and his colleagues engage in during downtime. The game serves as a metaphor for the Wall Street trading environment, where bluffing, manipulation, and risk-taking are common practices.
Throughout the narrative, Lewis sheds light on the excessive risk-taking, arrogance, and unethical behavior that shaped the culture of Salomon Brothers and Wall Street as a whole. He discusses the firm's involvement in the mortgage-backed securities market and its role in the financial market volatility of the 1980s.
Overall, "Liar's Poker" provides a critical examination of the financial industry, highlighting the excesses and questionable practices that contributed to the financial crisis of that era. The book not only captures the spirit of the financial world but also raises questions about the moral implications of the industry's behavior.
Books similar to Liar's Poker
1. "The Big Short" by Michael Lewis: Like "Liar's Poker," this book explores the world of Wall Street and delves into the financial crisis of 2008. It offers an insider's perspective and uncovers the shady practices and excessive risk-taking that led to the collapse.
2. "The Wolf of Wall Street" by Jordan Belfort: This memoir details the rise and fall of Jordan Belfort, a notorious stockbroker who used illegal and manipulative tactics to amass wealth. It offers a raw and unfiltered account of the excessive greed and debauchery that permeated Wall Street in the late 1980s and early 1990s.
3. "When Genius Failed: The Rise and Fall of Long-Term Capital Management" by Roger Lowenstein: This book chronicles the story of Long-Term Capital Management, a hedge fund that relied heavily on mathematical models to make risky bets, ultimately leading to its collapse and the subsequent bailout by major financial institutions. It provides an in-depth analysis of the dangers of complex financial derivatives and the interconnectedness of the global financial system.
4. "Barbarians at the Gate: The Fall of RJR Nabisco" by Bryan Burrough and John Helyar: Although not directly related to Wall Street, this book provides a captivating account of the leveraged buyout (LBO) of RJR Nabisco in the late 1980s. It offers a glimpse into the world of corporate takeovers, highlighting the greed, ego battles, and ruthless tactics employed by the key players.
5. "The Quants: How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It" by Scott Patterson: This book delves into the rise of quantitative trading and the role of mathematicians and computer programmers in reshaping the financial markets. It exposes the risks associated with complex algorithms and the dangers of relying solely on mathematical models to make investment decisions.
6. "Black Edge: Inside Information, Dirty Money, and the Quest to Bring Down the Most Wanted Man on Wall Street" by Sheelah Kolhatkar: This book tells the true story of the downfall of billionaire hedge fund manager Steve Cohen and his firm SAC Capital, which was embroiled in an insider trading scandal. It explores the dark underbelly of Wall Street, where illegal activities often go unpunished.
7. "The Buy Side: A Wall Street Trader's Tale of Spectacular Excess" by Turney Duff: This memoir offers a personal account of a former Wall Street trader's journey from modest beginnings to the heights of success and eventual downfall. It provides an insider's perspective on the excessive lifestyle, drug use, and the high-stakes world of hedge funds and proprietary trading.
Author of Liar's Poker
The author of "Liar's Poker" is Michael Lewis. He is an American author and financial journalist, known for his works on finance and economics. Apart from "Liar's Poker," which was published in 1989, some of his other notable books include "The Big Short," "Moneyball," and "Flash Boys." Lewis has received several awards for his work, and his books have been highly influential in shaping public opinion and understanding of the financial industry.
"Liar's Poker" is a non-fiction book written by Michael Lewis, published in 1989. The book portrays Lewis's own experience working as a bond salesman for Salomon Brothers, a prominent Wall Street investment bank, during the 1980s.
The story follows Lewis as he starts his career in the competitive and high-stakes world of bond trading. He provides an insider's account of the culture, practices, and excesses prevalent in the financial industry at that time. Lewis introduces readers to the colorful personalities he encountered, including his colleagues, managers, and traders.
The central theme of the book revolves around the game of Liar's Poker, a gambling game played with dollar bills that Lewis and his colleagues engage in during downtime. The game serves as a metaphor for the Wall Street trading environment, where bluffing, manipulation, and risk-taking are common practices.
Throughout the narrative, Lewis sheds light on the excessive risk-taking, arrogance, and unethical behavior that shaped the culture of Salomon Brothers and Wall Street as a whole. He discusses the firm's involvement in the mortgage-backed securities market and its role in the financial market volatility of the 1980s.
Overall, "Liar's Poker" provides a critical examination of the financial industry, highlighting the excesses and questionable practices that contributed to the financial crisis of that era. The book not only captures the spirit of the financial world but also raises questions about the moral implications of the industry's behavior.
Books similar to Liar's Poker
1. "The Big Short" by Michael Lewis: Like "Liar's Poker," this book explores the world of Wall Street and delves into the financial crisis of 2008. It offers an insider's perspective and uncovers the shady practices and excessive risk-taking that led to the collapse.
2. "The Wolf of Wall Street" by Jordan Belfort: This memoir details the rise and fall of Jordan Belfort, a notorious stockbroker who used illegal and manipulative tactics to amass wealth. It offers a raw and unfiltered account of the excessive greed and debauchery that permeated Wall Street in the late 1980s and early 1990s.
3. "When Genius Failed: The Rise and Fall of Long-Term Capital Management" by Roger Lowenstein: This book chronicles the story of Long-Term Capital Management, a hedge fund that relied heavily on mathematical models to make risky bets, ultimately leading to its collapse and the subsequent bailout by major financial institutions. It provides an in-depth analysis of the dangers of complex financial derivatives and the interconnectedness of the global financial system.
4. "Barbarians at the Gate: The Fall of RJR Nabisco" by Bryan Burrough and John Helyar: Although not directly related to Wall Street, this book provides a captivating account of the leveraged buyout (LBO) of RJR Nabisco in the late 1980s. It offers a glimpse into the world of corporate takeovers, highlighting the greed, ego battles, and ruthless tactics employed by the key players.
5. "The Quants: How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It" by Scott Patterson: This book delves into the rise of quantitative trading and the role of mathematicians and computer programmers in reshaping the financial markets. It exposes the risks associated with complex algorithms and the dangers of relying solely on mathematical models to make investment decisions.
6. "Black Edge: Inside Information, Dirty Money, and the Quest to Bring Down the Most Wanted Man on Wall Street" by Sheelah Kolhatkar: This book tells the true story of the downfall of billionaire hedge fund manager Steve Cohen and his firm SAC Capital, which was embroiled in an insider trading scandal. It explores the dark underbelly of Wall Street, where illegal activities often go unpunished.
7. "The Buy Side: A Wall Street Trader's Tale of Spectacular Excess" by Turney Duff: This memoir offers a personal account of a former Wall Street trader's journey from modest beginnings to the heights of success and eventual downfall. It provides an insider's perspective on the excessive lifestyle, drug use, and the high-stakes world of hedge funds and proprietary trading.
Author of Liar's Poker
The author of "Liar's Poker" is Michael Lewis. He is an American author and financial journalist, known for his works on finance and economics. Apart from "Liar's Poker," which was published in 1989, some of his other notable books include "The Big Short," "Moneyball," and "Flash Boys." Lewis has received several awards for his work, and his books have been highly influential in shaping public opinion and understanding of the financial industry.