Liar's Poker PDF/EPUB í Paperback

Liar's Poker When a single game of Liar s Poker is played with a million dollars at stake at a workplace, just what, or whom, in the world are you dealing with The most money hungry industry, probably Wall Street, ding, ding Money is a nebulous thing, and when you start dealing in the millions, perhaps billions, over a telephone, what happens to you and your soul When Savings Loans managers sell out for a chance to play in the big leagues, the world slides into Pottersville Liar s Poker makes you feel When a single game of Liar s Poker is played with a million dollars at stake at a workplace, just what, or whom, in the world are you dealing with The most money hungry industry, probably Wall Street, ding, ding Money is a nebulous thing, and when you start dealing in the millions, perhaps billions, over a telephone, what happens to you and your soul When Savings Loans managers sell out for a chance to play in the big leagues, the world slides into Pottersville Liar s Poker makes you feel like there are noGeorge Baileys left, and that s a tragic and cynical view indeed Aspects of bond trading are like the rest of Wall Street finance one of those deliberately arcane subjects, meant to prevaricate and hoodwink Michael Lewis gives you a true insider look at what goes on, uniquely positioned with his experience as a bond trader at Salomon Brothers when the firm was the king of trading back in the mid to late 80s He reveals his serendipitous start and the series of playground like rituals that governed a new class of geeks hell bent on climbing the ladder to become one of those classic corporate finance people It s a wacky combination of luck, self aggrandizement, connections, and risk taking This story is not meant to be triumphant, yet nor does it fully succeed as a take down In the aftermath of his time at Salomon Brothers, Lewis has enough self awareness to remark Christ, if social contribution had been the measure, I should have been billed rather than paid at the end of the year He has plenty of ascerbic commentary to go around, yet Liar s Poker simultaneously revels in the posturing and the culture of being on a trading floor the desire of every trainee to become a BSD aka Big Swinging Dick classy, I know to ruthlessly demand a bigger bonus in the second or third year of working or threaten to leave the firm which hordes of Salomon Brothers employees did to get away with screwing over as many customers as possible pat on the back and a fatter paycheck if you exploit their weaknesses When Lewis was in the game of bond trading, he very much embodied the things that can seem so awful about investment firms Much of them twenty something year olds, poised as if on top of the world with a humanitarian streak nowhere to be found Instead, the streak torrent of self interest and entitlement harbored by all these individuals left an acrid taste in my mouth, only made less pungent by Lewis s natural humor, sarcasm, and self deprecation This book will work for some people I much preferred Lewis s The Big Short Inside the Doomsday Machine to Liar s Poker This is really a me, not you problem I find economics can be an interesting topic, but I personally don t think I cared enough about bonds in the way that I felt an abiding interest in the 2008 housing crisis Here, you can see the disaster the 2008 one, not just the stock market crash in 1987 in the making absurdly irresponsible and profligate management while opportunistic ignorance and greed remained supreme If there s apositive way to describe Wall Street, please enlighten meI can only stomach that kind of subject material for so long I only want to read about selfish and borderline detestable human beings for so long The saddest realization is that it feels as if so little has changed or even that it has gone downhill, 30 years after this book has been published 1980s Wall Street and today s Wall Street do not seem so different There is always a Next Big Thing that rakes in the cash for the finance investment industry The entrance of junk bonds then, subprime mortgage loans in the 2008 crisis When our stock market is careening up and down because of coronavirus right now and the coming year s of our economy look bleak, who knows what Wall Street is conjuring up right now Experience would dictate that it s probably not good.By the end of this book, I felt enormously wearied and disillusioned, much the way that Lewis felt when he quit his job Would that he stayed, he could be much richer and the world would be much poorer All the respect to him for leaving, but this book has also left me, inevitably, too cynical I don t care if it s not Christmas right now I need to go watch It s a Wonderful Life again This book surprised me I read and enjoyed Lewis Moneyball a while back, and thought I was getting another journalistic account, this time of a crazy moment in corporate culture Instead, it s very much a memoir of that world And I didn t care for it at first, since the group of people he writes about are so spectacularly awful He brings a certain world of investment banking trainees home to you, and I wanted nothing to do with it If that was the whole book, I don t think I could take it So This book surprised me I read and enjoyed Lewis Moneyball a while back, and thought I was getting another journalistic account, this time of a crazy moment in corporate culture Instead, it s very much a memoir of that world And I didn t care for it at first, since the group of people he writes about are so spectacularly awful He brings a certain world of investment banking trainees home to you, and I wanted nothing to do with it If that was the whole book, I don t think I could take it Something like the way some people don t like The Office esp the BBC version it s too painful to see such human lowness.But I m glad I stuck around, because he can really tell a story The sense of battle, politicking, and putting up fronts Wry observations Big picture, little picture He comes off as a whistle blower with no sense that he s betraying his world just an inside man dissecting a world he finds amusing, deranged, and perversely fun Atlas Shrugged for the philistine It s subtle glorification of the greedy, underneath a veneer of hilarious sarcasm and grudging respect is the stuff financial Bibles are made of An interesting slice of financial history is captured succinctly,precisely the development of Collaterized Mortgage Obligations in the 80 s which also has direct relevance to the recent U.S housing crisis If you wish to get everything you can out of this book, get your Finance 101 straight It ll be a lotAtlas Shrugged for the philistine It s subtle glorification of the greedy, underneath a veneer of hilarious sarcasm and grudging respect is the stuff financial Bibles are made of An interesting slice of financial history is captured succinctly,precisely the development of Collaterized Mortgage Obligations in the 80 s which also has direct relevance to the recent U.S housing crisis If you wish to get everything you can out of this book, get your Finance 101 straight It ll be a lotfun In 2007, super investor Warren Buffett of Berkshire Hathaway made a bet with some of the people over at the Protege Partners hedge fund He wagered that over a period of ten years the S P 500 a passive index would outperform a group of five hedge funds handpicked by Protege, with the loser donating one million dollars to the charity of the winner s choice Hedge Fund A limited partnership of investors that uses high risk methods, such as investing with borrowed money, in hopes of realizing In 2007, super investor Warren Buffett of Berkshire Hathaway made a bet with some of the people over at the Protege Partners hedge fund He wagered that over a period of ten years the SP 500 a passive index would outperform a group of five hedge funds handpicked by Protege, with the loser donating one million dollars to the charity of the winner s choice Hedge Fund A limited partnership of investors that uses high risk methods, such as investing with borrowed money, in hopes of realizing large capital gains With oneyear to go as of this writing , here are the results thus far The hedge funds are up a cumulative 22 percent The SP Up close to 66 percent.So what does this have to do with Liar s Poker First, the prospective reader should understand what Liar s Poker is It is a memoir by best selling author Michael Lewis about his brief stint working for the investment firm Salomon Brothers during the mid eighties.So, you may well ask, what does this have to do with Warren Buffett Well, there are two connections First connection In 1987, Buffett was approached by Salomon Brothers which was struggling against a hostile takeover attempt and offered a deal If Buffett would lend Salomon 700 million dollars in the form of a special bond which Salomon would then use to buy back their own shares to fight the takeover attempt then Buffett would have two options Either A he could hold the bond in exchange for an interest rate of nine percent a good return or B he could, at any time before 1996, trade the bond in for Salomon common stock at 38 a share, only losing money if the company somehow went bankrupt.The second connection,poignant than the first, is this Buffett quote There s been far, far, farmoney made by people in Wall Street through salesmanship abilities than through investment abilities Which brings us back to Salomon Brothers.Because Liar s Poker is their tale, the story of a group of traders and salesmen who at times not only did not make their customers money, but who on occasion used their customers as patsies in order to minimize their own losses at their customers expense by selling said customers investment products that Salomon Brothers owned, and which Salomon knew were crap when they were sold, in order to get them off Salomon s books It tells the tale of Michael Lewis, fresh out of Princeton and the London School of Economics, and his three year sojourn with what was at that time one of Wall Street s premiere investment firms, and how a combination of greed, stupidity and internal corruption almost destroyed the company.Highly recommended reading for those folks curious about the goings on of a prominent Wall Street firm during the eighties, and who don t mind a behind the scenes look metaphorically speaking at how the sausage gets made Why am I languishing here, making approximately 0 dollars as a librarian Why was I not a Wall Street investment banker These guys were having all the fun In his introduction to the Big Short, Lewis writes that he was dismayed people took Liar s Poker not as a cautionary tale, but as a how to manual for their careers But I can totally understand why He makes the trading floor sound like the place to be, the absolute center of the universe He s also got a real knack for explaining somethin Why am I languishing here, making approximately 0 dollars as a librarian Why was I not a Wall Street investment banker These guys were having all the fun In his introduction to the Big Short, Lewis writes that he was dismayed people took Liar s Poker not as a cautionary tale, but as a how to manual for their careers But I can totally understand why He makes the trading floor sound like the place to be, the absolute center of the universe He s also got a real knack for explaining something in one or two sentences, and then providing a brief anecdote or lively quote to illustrate the thing described It s literally never boring I ve heard people say that his writing is successful because it makes readers feel smart, and I get that Although sometimes, when you have failed to understand something so colorfully and breezily explained, it can actually make you feelless smart I read one particular page about the rise of junk bonds three times, and then just gave up pp 83 is a discussion of S L s failure in the US.pp 136 is the best explanation of CMO s I ve ever read.Great read Initially loaned to me by a coworker I went out and bought it shortly thereafter.A former art student winds up becoming a bond salesman for Salomon Brothers in the mid 1980 s He sees a lot, and describes it vividly Chernobyl The October Crash of 1987 Gutfreund and Meriwether quibbling over how much to bet in one hand of the title game.He introduces some terms to the lexicon th pp 83 is a discussion of SL s failure in the US.pp 136 is the best explanation of CMO s I ve ever read.Great read Initially loaned to me by a coworker I went out and bought it shortly thereafter.A former art student winds up becoming a bond salesman for Salomon Brothers in the mid 1980 s He sees a lot, and describes it vividly Chernobyl The October Crash of 1987 Gutfreund and Meriwether quibbling over how much to bet in one hand of the title game.He introduces some terms to the lexicon that persist to this day BSD as used in the movie Boiler Room Good deal of relevant information for both the average investor as well as the seasoned professional When the news about Chernobyl breaks Mike s good friend has some advice for him, Buy potatoes This is a powerful illustration of how traders, not investors, think.A spread, any spread While this is probably Michael Lewis s most famous book, it is not my favorite Lewis is always an engaging writer, but maybe because this is a recounting of a period of his life, and not an investigation into an exciting mystery or a study of a socialogical phenomenon, it s just not as fascinating as his other works The book is interesting, as it follows Lewis s journey from college interviews to working at top investment firm Salomon Brothers The whole investment banking world is incredibly While this is probably Michael Lewis s most famous book, it is not my favorite Lewis is always an engaging writer, but maybe because this is a recounting of a period of his life, and not an investigation into an exciting mystery or a study of a socialogical phenomenon, it s just not as fascinating as his other works The book is interesting, as it follows Lewis s journey from college interviews to working at top investment firm Salomon Brothers The whole investment banking world is incredibly cutthroat, not surprisingly The money to be made was incredible, and unfortunately the snakes of the world benefited from this People who could sell worthless stuff for large sums of money were the heroes People who had the best interests of their customers at heart were the losers A problem with this book is that it is somewhat dated again, because it is a diary of time in Lewis s life and not just about an event that exists on its own Honestly, I probably would have scored this higher and enjoyed itif Lewis s other books weren t so absolutely fantastic Moneyball in particular is one of my favorite books and has been reread until it s somewhat tattered I ve loved every other book by Lewis, so this one suffers in comparison Still a good read, if you are interested in the good ol days of finance First book of this type I truly enjoyed Thank you Lewis for opening up a new field of book to explore. 21 years after publication, Liar s Poker feels both relevant and ancient Relevant because it seems the Big Swinging Dicks of Wall Street are ever with us ancient because of references to things like WATS lines and the lionizing of Salomon Brothers trader John Meriwether, whose Long Term Capital Management would spectacularly implode in 1998, and Michael Milken, who apparently had not yet been indicted when the book went to press but got a 10 year prison sentence for securities violations.Lewis 21 years after publication, Liar s Poker feels both relevant and ancient Relevant because it seems the Big Swinging Dicks of Wall Street are ever with us ancient because of references to things like WATS lines and the lionizing of Salomon Brothers trader John Meriwether, whose Long Term Capital Management would spectacularly implode in 1998, and Michael Milken, who apparently had not yet been indicted when the book went to press but got a 10 year prison sentence for securities violations.Lewis is a raconteurthan a documentarian, which is both pleasing and irritating Certainly raconteurs can sellbooks Most people don t want to read dry scholarly accounts of Wall Street But there are times in the book most of chapters 1 4 where his writerly persona is so big that it crowds out everything else His tone is so arch, snarky, exaggerated, so swimming in eddies of simile and metaphor, that I don t completely believe him though I m sure the vague outlines of his story are true He pairs bravado with disarming self deprecation, telling us repeatedly how he was utterly green, knew nothing, stumbled his way through everything, yet brought a trader who had wronged him to his knees, and by the time he left Salomon was earning the largest bonus of his class undeserved, he insists He steps away from the tales of towel slapping long enough to give a detailed history of the rise of mortgage trading at Salomon Brothers and how Salomon management allowed hegemony to slip through their fingers Raising the question, how did such a junior employee know so much about a the mortgage market, and b the internecine battles among Salomon bigwigs The portrait he paints of Salomon s chairman John Gutfreund is fairly devastating though ancient history Gutfreund would be forced out by Warren Buffett in 1991 after a Treasury bond scandal.Some examples of his raconteurship Ranieri welded a coherent departmental personality out of two separate but equally gamy ethnic groups Italians and Jews, if you care Buying whole loans that is what the traders called home loans, to distinguish them from mortgage bonds was an act of faith, like eating bologna.For each step forward in market technology they the traders took a step backward in human evolutionthey became louder, ruder, fatterTheir days began at 8 a.m with a round of onion cheeseburgersWe d order four hundred dollars of Mexican food, says a former trader You can t buy four hundred dollars of Mexican food But we d try guacamole in five gallon drums, for a start A customer would call in and ask us to bid or offer bonds, and you d have to say, I m sorry, but we re in the middle of the feeding frenzy I ll have to call you back The time was the s The place was Wall Street The game was called Liar s Poker Michael Lewis was fresh out of Princeton and the London School of Economics when he landed a job at Salomon Brothers, one of Wall Street s premier investment firms During the next three years, Lewis rose from callow trainee to bond salesman, raking in millions for the firm and cashing in on a modern day gold rush Liar s Poker is the culmination of those heady, frenzied years a behind the scenes look at a unique and turbulent time in American business From the frat boy camaraderie of the forty first floor trading room to the killer instinct that made ambitious young men gamble everything on a high stakes game of bluffing and deception, here is Michael Lewis s knowing and hilarious insider s account of an unprecedented era of greed, gluttony, and outrageous fortune

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