Liar's Poker

I've decided that I have an allergy to money and finances. I mean, I have little patience for really anything in that realm. I'll leave an analysis of why I suffer from this allergy for another blog post. For now, let's just say that my condition made picking up and digesting Michael Lewis' 1989 book Liar's Poker a daunting challenge.

So let me be totally upfront. After powering through 300+ pages of digressions about bonds, funds, mortgages, thrifts, markets and interest rates, I have a barely passing knowledge of what any of these things are and how they did or did not contribute the epic crash of Salomon Brothers in the late 80's. Give me a basic economics pop quiz and even after absorbing the meticulous and clear Lewis writing in Liar's Poker and you can surely put me down for a D+ at best.

Context, then, be damned. Once again, Lewis had me when he was doing what I think he does best and that is telling us stories about people. Wow. Dash Riprock, Gutfreund, Milken, Alexander, and, of course, most memorably, Lewie Ranieri. What's Lewis' genius? Two things. First, he treats his characters fairly, whatever their character deficiencies and flaws. Next, he's just a vivid writer. After a chapter that features the introduction of a new character, you feel like you know the person, or at least that you know people who are like that person.

So pick up Liar's Poker with this in mind. Heavy on the finance-talk? Yes. A brilliant introduction to the maniacal financial "geniuses" that blew up Wall Street in the late 80's? Yes again. Lewis has a new book coming out, called The Big Short. The jacket calls it almost a sequel to Liar's Poker. You can bet I'll be picking that up at my first opportunity. Just spare me the pop quiz...