Liar's Poker : Michael Lewis

Liar's Poker was a great book, yet it justifies my perspective that the financial business is pure madness.  Michael Lewis does a great job of showing us how crazy Soloman Brothers really got and even though it was run by some very smart people, it was still able to burst up into flames.  There are a couple of main themes that I saw as prevalent throughout the book

1. GREED
• Throughout the book we come to meet different individuals who continue to want to be the best.  They will do anything they can to manipulate others to better themselves.  For example the bond salesman that tricks Michael into selling the AT&T bonds.  He does not care about anyone besides himself.  The German investor ends up getting hammered because of the greediness of the salesman.  
• It is baffling to me that these companies put themselves in front of everyone else and lack the respect and companionship to their customers.  In my opinion it is very important to put the customer first and if the incentives are not aligned with the customer the business will ultimately fail (like Soloman Brothers).
2. Class warfare
• This is another important theme that plays out consistently throughout the book.  We constantly see others taking credit for work that is not theirs.  An example of this was when Michael and Alexander created a new security betting on the rise of the German Bond market.  A man that Michael called the Opportunist jumped in and claimed the whole idea as his own and only put his name on the memo.  This is a classic example of higher ups using their power to undermine the younger, smarter individuals.
• I understand that this is just part of the business but it makes me question the persons character when they steal an idea and claim it as there own.  I am a firm believer in karma.  I think it is important to give credit when credit is due and it was definitely due in the case of Michael and Alexander.  
• We consistently see the 'peons' at places like Soloman Brothers not being appreciated as well as being work horses for their higher ups.  One of my good friends that works for Goldman Sachs sits in his office all night waiting for his superior to send an email that could be sent if the woman took 3 minutes to read it over and push send.  Tell me if you think that is efficient
3. Personal Time
• This theme does not seem to come up in the book very much.  That is because the individuals who work for these firms do not tend to get much time for themselves and tend to be in the office day in and day out.  The young professionals tend to get no free time and their work is their life.  But, it doesn't seem very different for the execs either.  
• "Bosses attached beepers to their favorite analysts, making it possible to call them in at all hours.  A few of the very best analysts, months into their new jobs, lost their will to live normal lives.  They gave themselves entirely over to their employers and worked around the clock.  They rarely slept and often looked ill; the better they became at the jobs, the nearer they appeared to death"
4. One sides advantage is another sides disadvantage
• One of the biggest themes of the book was the fact that people did what was best for themselves and did not care whatsoever about the people that were on the other end of the trades.  Michael fights a battle over whether or not he should screw over his customers to better his companies.  The way I see it, business is business but customers should be friends and you don't screw over someone who has put their faith in you.  There are many cases when they tried to get rid of bonds and they relied on there relationships with the customers to get the deal done.  This is very deceiving and is not a responsible way to run a business.  You really screw over a customer and that customer would be crazy to come back.  Maybe it happens, but if it were me I would avoid doing business with that firm till the day I die.  
5. Ego
• Another theme I want to talk about is ego.  Like class warfare this theme continued to prevail within the big Wall Street firms.  There are many different instances where this happened throughout the book but none bigger than the separation of groups within Soloman Brothers and the break up of all of its best parts.  Lewie Ranieri for example created a huge market for mortgages, yet many of the other egotistical higher ups were jealous.  There was a huge problem within Soloman Brothers to control the egos of their executives and when someone felt as if they were getting screwed they bailed out.  Many times they were getting screwed and Soloman Brothers ended up paying for it.
6. Business is Business with large firms
• It was crazy to me how the firing and job jumping occurred.  When people were getting fired, the company didn't seem to care who they were or how the loss of their job played into the employees lifestyle.  I understand that things need to be made efficient, but firing a mass amount of people and making them clear out there stuff while snatching their swipe card doesn't seem very respectful to me.  Efficiency is needed but so is closure and respect.  Yes they got packages but losing a high paying job and treating them like dirt is just not right.  Either way that's how the world works and I can not change it. 

All in all, Liar's Poker is a book worth reading.  It has many lessons about the investment world and a day in the life of a Wall Street employee that are very valuable.  

Richard Foxcroft