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4.4 out of 5 stars
4.4 out of 5
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Liar's Poker (Norton Paperback)

Liar's Poker (Norton Paperback)

byMichael Lewis
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Top positive review

Positive reviews›
Tomas Gomez Villa
5.0 out of 5 starsFunny and though-provoking
Reviewed in the United States on October 22, 2023
Lewis' story tried to warn people of Wall Street's demons. Instead, his rich story on the excesses and thrilling life of 'finance people' had undergrad students writing him emails asking for tips on how to get inside the beast. This book will have your eyes glued to the pages. As a Master in Finance, I found it very clear in the conceptual explanations given, and overall very entertaining. Already read twice the book!
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Top critical review

Critical reviews›
Melvin Anderson
3.0 out of 5 starsLife is not a poker game
Reviewed in the United States on June 18, 2011
I expected to read a lot about the men who gave Wall Street its bad name and I was not disappointed. The copy I bought was a little over 300 pages long and about 200 of those pages was devoted to the men working the phones and making the deals. Lewis devoted the final 100 pages to his career and both sections had interest and disillusionment contined therein. First, liar's poker was barely mentioned and I got the impression poker was chosen for euphony, the game as explained how played seemed much more like Scrabble, with money and/or its equivalent taking the place of words. That made an introduction to the men who worshipped money, lived for it, fought for it and what they did to acquire it, and how to use it as reward or punishment. The men's personaities shaped their companies and/or departments, their life codes and their struggles for what money they did get. Money was power, money was reward, money ruled their life.
Lewis showed how it attracted him, what benefits it could bring, how he could handle it and how he could handle other men in the struggle for the available money. He closed the book by saying he lost interest, he never knew what he was doing but he had the power to handle money and interest speculators in what he was doing. All his training and experience meant nought, he copied others to hide his lack of knowledge. However he made it all interesting but was it truthful? Even he said he did not know.
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From the United States

Tomas Gomez Villa
5.0 out of 5 stars Funny and though-provoking
Reviewed in the United States on October 22, 2023
Verified Purchase
Lewis' story tried to warn people of Wall Street's demons. Instead, his rich story on the excesses and thrilling life of 'finance people' had undergrad students writing him emails asking for tips on how to get inside the beast. This book will have your eyes glued to the pages. As a Master in Finance, I found it very clear in the conceptual explanations given, and overall very entertaining. Already read twice the book!
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Bruno Surpris
5.0 out of 5 stars A Wall Street Bible
Reviewed in the United States on September 28, 2023
Verified Purchase
I can’t believe it took me this long to read Liars Pocker! I worked at Salomon Brothers as a high school intern and then part time while in college . There is so much raw information to learn from in that book. It’s funny, honest, and very informative. Highly recommended!!!
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Neville Samuels
4.0 out of 5 stars A Classic and Timeless Tale of Life as an Investment Banker
Reviewed in the United States on May 26, 2012
Verified Purchase
Although originally published in October 1989, Michael Lewis' 'Liar's Poker' is as timely a read today as it was back then. It seems the zero sum game in investment banking hasn't changed. For every money maker, there is a money loser, and usually it's the banks customers who lose.

Described as 'wickedly funny,' Michael Lewis has a knack for articulating the absurd, and this is his first, and one of his best books. A true story of how he started his career as a trainee in the investment banking firm, Salomon Brothers, later becoming a bond trader based in the Salomons London office, until he left in 1988.

He worked the phones, and on his customers, hard enough to become a 'Big Swinging Dick', or traders code for those who trumped the system, making millions for their company.

Michael Lewis, unlike many other traders, did have a conscience, but he also wanted to keep his job. He makes up names for those who helped and inspired him at the firm, like 'Dash Riprock', his constant trader companion, and his 'Rabbis'; a mentor, or manager who took him under their wing.

The author is less forgiving and used real names for those who deserve some kind of scorn, like John Gutfruend, who was chairman of Salomon Brothers during Michael Lewis' tenure there. Described as the 'last person a nerve-racked trader wanted to see.' He was the type of chairman who liked to sneak up from behind and surprise his traders.

The author learns, soon after leaving his training for the trading desks that 'some of the men... were truly awful human beings... They didn't have customers. They had victims.'

Other characters are colorfully portrayed in the book, although not many women are in the bunch, since, at the time, it was a male dominated play pen with not too many Big Swinging Dickettes. There was the 'Human Piranha,' a legendary trader who sprouted out profanities, stunning some trainees into silence and awe. And those 'mean gluttons' who worked as mortgage traders. Lewis wrote, 'nothing angered them more than being without food, unless it was being interrupted while they ate.'

Michael Lewis also describes in the book the creation and use of mortgage bonds, but not too technically, so it won't overwhelm a layperson. And this is just one reason why 'Liar's Poker' is a timeless piece. After all, it was the invention of mortgage bonds that ultimately led to the financial crisis in 2008.

And of course, the book would be vacant without mention of bonuses. Those fat sums of money handed out around December time to those who scored well enough to earn one. The size of a bonus measured the traders worth, and ego. Lewis adds and subtracts some zeros to give us an idea of how first and second-year traders bonuses were subject to a 'floor and ceiling.' And how the business 'froze' around bonus time. It was all anyone thought about. Michael Lewis explains that watching the faces of people coming out of their bonus meetings 'was worth a thousand lectures on the meaning of money in our small society.'

The only difference between 1988 and now is that those excessive trader and executive bonuses are now part of a larger political and public discourse. In 'Liar's Poker,' Lewis describes how large salary bumps and bonuses are used to buy loyalty. But in reality, if an investment house across the street offers a better deal, the trader won't hesitate to go for more zeroes.

Michael Lewis, is a respected financial journalist and non-fiction author. All of his books have been best-sellers for good reason. 'Liar's Poker' is an exemplary example of how truth can be stranger than fiction. Lewis describes life at Salomon like being in a 'jungle.' The players must be fiction, but, nope, they are real.

The scary thing about this book is how timeless, and prophetic it is. Michael Lewis experienced the Wall Street crash of October 1987, and describes it in the book. And here we are, more than 20 years later. History repeating itself.
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Bama Fan
4.0 out of 5 stars Interesting read
Reviewed in the United States on June 12, 2023
Verified Purchase
This book was very different from other Lewis books because he focuses a lot more on autobiographical details and it's interesting to look back and read this to see how he viewed the world at that time. There is a lot of imagery of what it was like within one of the more successful investment banks in the 80s and Lewis brings the people and the culture of the organization to light in the way that only Lewis can do. I know very little about this and I was able to follow along the whole time to get a sense of what things were like and to read about the ups and downs within the organization. Enjoyable and worth your time!
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David Gallman
4.0 out of 5 stars Hello Suckers!
Reviewed in the United States on May 31, 2009
Verified Purchase
Liar's Poker is a bluffing game played by the stock and bond traders at Salomon Brothers. There is series of arbitrary numbers -- the serial numbers on dollar bills -- that the associates make bids on. No one has any idea what the other players are holding, so the actual numbers are less important than the traders' abilities to bluff each other. The game is how they learn and practice putting one over on each other.

The game is also the title and central metaphor for Michael Lewis' 1989 memoir about becoming a bond trader at Salomon Brothers. His book pops up on a lot of best-of-business writing lists. It may seem odd to be reading it twenty years on, but if you really want to understand how the seeds of our current economic crisis were sown, you should read it.

Salomon Brothers basically invented the "mortgage backed security" that are one of the major causes of our economic problems.

What is revealing and relevant about Lewis' book is the dissection of the structure of the brokerage house and the attitudes that dominate it. The company, trader, and salesman's best interest are often at odds with those of their customers. The basic principle of trading is this: bluff the customer into placing big bets on stocks and bonds and take a commission on the sale. If the bet "blows up" the customer, well, "Hey, it's the market. It is unpredictable. Who knew?" (But the company and trader got their piece of the action.) If the bet produces a big return for the customer, then the customer has more money to use to make bigger bets with the now "proven" financial adviser.

In the lexicon of Salomon Brothers, "blowing up a customer" is when the customer loses their entire investment. It is commonly known in the industry that associates fresh from the training program will "blow up" most of their customers for about six months. Salomon Brothers only allows these green traders or "geeks" access to small investors to prevent damage to their big institutional investors, the organizations that will make bets in the tens of millions to billion of dollars.

The working class and middle class salary men who have bought into the common wisdom that the market always goes up over time and will beat inflation get fed to the "geeks" who are the most likely to blow them up. The trader/salesman gets his percentage. The company books the business. The investor takes all the risk and loss.

Lewis' own description of the practice: "In need of a euphemism for what we did with other people's money, we called it arbitrage, which was just plain obfuscation. Arbitrage means 'trading risklessly for profit.' Our investors always took risk; high-wire act would have been more accurate than arbitrage. In spite of the responsibility implied by my job, I was ignorant and malleable when I advised my first customers. I was an amateur pharmacologist, prescribing drugs without a license. The people who suffered as a result were, of course, my customers."

Lewis extends the metaphor. The brokerage house is basically a casino. The traders and salesmen are dealers. The markets, like the odds of winning a game of chance, are vaguely knowable, but entirely unpredictable. The investors are gamblers.

The difference, though, between Vegas and Wall Street is that people who go to Vegas know that they are gambling. People who take their money to Wall Street have been told that they are investing.

Lewis, to his credit, quits his job.

If you find yourself a little flummoxed by all of the financial reporting about our current economic meltdown, read Liar's Poker. It will help you make sense of it all.
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Brian S. Monroe
5.0 out of 5 stars Small Investor Required Reading - Heed the Warnings!
Reviewed in the United States on October 9, 2011
Verified Purchase
A hilarious and grimly realistic look at the world of investment banking - as true today (2011) as it was in the 1980s when originally written. This should be required reading for anyone who has ever thought they could beat Wall Street at its own game - in other words, a cold-blooded reality check for those poisoned by the fumes of the "get-rich-quick" myth.

Although an autobiography detailing the author's career with Salomon Brother's in the 1980s, it also serves as an informative study on the turmoil that rocked the markets in the 1980s that resulted in a major change in investor focus from the stock exchange to the bond market - and it is this that set the stage for the infamous crash of 1987 as well as the problems we face today with the mortgage bond market. It all started here.

Lewis pulls no punches with frank commentary or his brutal prose: he has no problem ripping aside our comforting illusions of the investment world and is equally ready to turn his dagger against himself as well as against his former colleagues. He puts to rest the myth that 'anyone can get rich doing this' - advice that many former 'day-traders' of the 1980s probably wish they had heard at the time. True, if you know what you are doing you can likely make money - but that requires a twenty-four/seven commitment to keeping an eye on the entire market - not just stocks and bonds but the dynamics driving the industries behind them - which very few can do without quitting their day jobs. He shows the results of the dark side of the market - the consequences of losing triple your original investment - and how hard it is to avoid this. The odds are definitely stacked against the casual investor. Best summary of all this information: don't do it.

This book also is an excellent business case study about what happens when a firm suddenly finds itself out of its familiar territory and makes no provisions or changes to deal with it. Consider the fact that we have an investment bank doing business in Europe - that has no idea who the European banks are! (Yes, you'll find that in the text). Or management that refuses to concede that their perfect plan has nothing to do with the business reality. Or, worse, that the lowest members of the hierarchy are able to see instantly that a firm, the most profitable on Wall Street at the time, is doomed to fail. It does.

Readers who are offended by the use of uncensored language would probably do well to steer clear of this work - Lewis does not make any attempt to tone-down either the facts or the language used by the players. He does not offer a positive spin on the risks involved in the investment game and he makes it clear that all players need to be careful about assuming how much their advisers really have their best interests at heart. This is all to the good - this book is all the more striking because of this.

Definitely a must-read for those who have ever considered taking on the market or for those who desire a clearer understanding of what exactly goes on in the world of Wall Street. It isn't comforting - nor should it be. But at least if a person still feels able to take on the windmills after reading this warning, they will be making sure that they aren't the fool in the market.
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H GAYLORD HITCHCOCK JR
5.0 out of 5 stars A Delightful Read
Reviewed in the United States on August 23, 2023
Verified Purchase
Lewis’ tale is fascinating—hard to put down. The ending however was disconcerting. I would have loved to know what he did after Salomon.It would have made his resignation make more sense. But the book is a delight and I look forward to reading more of his writing.
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Michael I.
4.0 out of 5 stars The Birth of the Monster
Reviewed in the United States on March 16, 2012
Verified Purchase
LIAR'S POKER is one of those memoirs that immerse you in something far greater than one person's experience. It immerses you in a time and a place that were unique and spiked with all those base qualities of human nature: greed, arrogance, pomposity, (the list goes on). The vision he paints of Salomon Brothers in the mid 1980s is a contemporary verse pulled right out of Dante's Inferno.

Lewis begins his career in high finance with a chance (hilarious) encounter with a S. Brothers partner's wife at a charity reception hosted by the late Queen Mother. What follows is a descent into a highly lucrative fraternity house where every pledge is initiated into a hyper-macho, hyper-greedy arena. S. Brothers as described by Lewis is a brutal landscape populated by obese, obscene tribes vying for dollars.

For those of us who have read Lewis's more recent books, his debut memoir lacks one quality that his other volumes have - crystal clarity. LIAR'S POKER attempts to clarify the opaque, complex world of bond trading but the effort gets mired in jargon and wonk. I found my eyes glazing slightly at some of the internecine battles that emanated from convoluted bond schemes.

This is a great book to read thirty years after it was written because it traces the birth of a Wall Street we've come to know. Reading about the men who first came up with novel ways to convert mortgages into bonds is like reading the private musings of a young Lee Harvey Oswald. It's eerie. Other scenes involving Lewis's dismay at the habit of S. Brothers disregarding the well-being of clients in the pursuit of revenue are troubling and completely unschocking in a current context. The practice of major investment banks of subverting client interests to bank interests is now well-documented. Only days ago, Greg Smith, a Goldman Sachs executive, published his Op-Ed in the NY Times decrying the culture of greed over relationships within Goldman. Smith's op-ed could have been written by Michael Lewis in 1987.

LIAR'S POKER may be one of the most misunderstood books. To hear aspiring financiers express their love of this book is to hear someone who has seemingly missed the point. It's odd that someone would read this book and see it as inspirational. Did they not read the epilogue where Michael Lewis decides to walk away from untold riches because he sees there's little personal value in his job as a bonds salesman, where he questions the entire social value of a job that turns money into more money, where monotony and viciousness is rewarded with a minor heap of gold?

To the young people vying for the life described in LIAR'S POKER, I say good luck.
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Vasiliy Zhulin
5.0 out of 5 stars Insightful look into Salomon Brothers in the 1980s
Reviewed in the United States on January 7, 2009
Verified Purchase
Michael Lewis does an excellent job describing the internal history of Salomon Brothers in the 1980s. He writes an easy-to-read narrative that is not only a pleasure to read, but is also a sarcastic and detailed examination of how business is done on Wall Street. While Lewis writes specifically about Salomon Brothers, it is not difficult to apply his various criticisms toward other firms.

I felt the book was split implicitly into three parts. First, Lewis describes his first impressions of Salomon Brothers, the training program, and his initial experiences getting the job. Second, he steps back from his autobiographical narrative and explains the bigger picture. He tells the reader of the people who ran and built the firm in New York, the crazy things that happened on the trading floor, and how the mortgage trading department grew from a one-man team to a behemoth that would dominate Wall Street. Finally, he returns to his autobiography and talks of his experiences as a bond salesman in the London office. He outlines the fateful events of late 1987 and finally describes his last day at Salomon in 1988.

In the third part, Lewis also gives a brief history of Michael Milken and his rise to power at Drexel Burnham. Lewis gives the reader a lesson on how junk bonds became popular (Milken essentially made the market for junk bonds, just as Lewie Ranieri did the same for mortgage bonds). He describes how the demand for junk bonds greatly exceeded the supply until a new use for junk bonds was found - financing leveraged buy-outs by corporate raiders.

This book is a very enjoyable read. It is not as vengeful as Monkey Business (also a great read, but very different), but more descriptive and historical in nature. I was a bit reminded of Barbarians at the Gate when reading it. I felt that I got a great overview of Salomon Brothers in the 80s and of the people who made the firm great, especially Lewie Ranieri. Lewis also does an excellent job describing various finance concepts that he discusses throughout the book. He keeps things simple but he doesn't leave out details that would leave me hanging. That was very thoughtful of him, in my opinion.

In conclusion, I highly recommend this book to anyone interested in the corporate culture on Wall Street in the 1980s. It's a quick, easy, and enjoyable read.

Pros:
+ great historical overview of Salomon Brothers in the 80s
+ sharp, insightful, and satirical - an excellent look at Wall Street corporate culture
+ lots of interesting detail on people who built markets in the 80s
+ good definitions and descriptions of several financial concepts
+ fun to read!

Cons:
- a relatively small window into the history of the firm
- ends in 1988; would be great to see another edition wrapping up Salomon's story
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Doug Nelson
4.0 out of 5 stars He tells it like it is...things are not always as they appear to be...
Reviewed in the United States on January 19, 2011
Verified Purchase
This was the second Michael Lewis book I've read, the first being "The Big Short", which I also recommend.

As a financial advisor, I find Mr. Lewis' account of his time on Wall Street in the 1980's as a direct reflection of the kind of culture that no doubt persists to this day. I couldn't help but think that this same environment contributed to the financial meltdown of 2008.

Yet, to some degree this book is the classic discussion of "nature" vs. "nurture": are you born the way you are or are you a product of your environment?

Mr. Lewis would suggest that the culture of Wall Street, and perhaps most of the entire financial services sector (of which I am a part), can be so strong that one's actions, beliefs and values are greatly influenced by the environment in which one works. The influence from the environment can be so strong that at times one may not be able to see the forest through the trees. In other words, the environment dictates that ones actions are justified because everyone is doing it and that's just how things work...until they no longer work.

In many ways, as an industry participant, I found it shocking how self-focused the organizations Mr. Lewis described in his book could be. Perhaps I found it shocking because I was always brought up with the ideals that if it was good for my customer, then it would ultimately be good for me. Yet, the book tells of many tales, some humorous and some very sad, of competition, deceit, success and failure.

Now, in all likelihood, the examples cited by Mr. Lewis are examples that could be fit into any industry. The big take away for me was the realization of just how dog-eat-dog and self-serving our capitalist, democratic society has really become. Despite the fact that this was written in the 1980's, it is scary to think how little has changed.

While perhaps our environment can have great influence over our actions (ie: nurture), perhaps the greatest sadness is that human beings, in general, repeat the same mistakes, generation after generation. This may be a clear reflection of really who we are (ie: nature).

Thank your Mr. Lewis for your many great books. I'm looking forward to reading more of your work in the future.
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