"Liar's Poker" by Michael Lewis tells the story of what it was like to work on Wall Street in the 1980s. The book documents the rise and fall of the world of high finance during this time and its effect on the people who inhabited it.
The book begins with Lewis as an entry-level bond salesman at Salomon Brothers, a Wall Street investment bank. He quickly realizes that the "big boys" in the firm, the top bond traders, are using their positions for more than just trading securities. They are gambling immense amounts of money, using their knowledge of the markets to take advantage of their clients and colleagues alike. They play a game called "Liar's Poker", in which they try to guess the serial numbers on dollar bills in their possession. The winner of each round of the game is the one with the closest guess.
The main story follows Lewis and his coworkers as they trade bonds and try to out-maneuver each other in a high-stakes game of personal ambition. Along the way, Lewis provides a vivid account of the culture of Wall Street and the outrageous behavior that often takes place. He highlights how this culture fuels a lust for money and power and how it can create villains and victims alike.
Throughout the book, Lewis gives us insight into the mentality and attitudes of the bond traders. He portrays them as driven, cutthroat professionals who will do whatever it takes to make a deal and make money. He also details how the industry's most skilled traders find success.
The book culminates in the collapse of the Wall Street market after the government fails to intervene in the stock market crash of 1987. Through Lewis’s narrative, we can see how the recklessness and greed of the bankers led to the doom of the investors they advised.
Liar's Poker is an engaging and informative read that is as thought-provoking as it is entertaining. By taking us into the world of Wall Street traders and the dizzying heights of finance, the author helps to illustrate the high stakes world of finance and the consequences of greed. Its insights, while often humorous, ultimately provide a clear picture of how Wall Street works and why it is so important to the global economy.
This book is essential reading for anyone interested in the culture of Wall Street, the aftermath of the 1987 crash, and the irresponsible behavior that led to the disaster. It is an insightful and timely warning of how a culture of unchecked ambition and greed can have disastrous outcomes. In the end, Liar's Poker serves as a valuable reminder to those in the industry that irresponsibility and hubris can be the undoing of any market.
