Liar's Poker by Michael Lewis: Summary & Notes
by Michael Lewis
In One Sentence
A firsthand account of the excess, greed, and absurdity of 1980s Wall Street that exposed how Salomon Brothers and the bond market worked—and eventually imploded.
Key Takeaways
- Wall Street in the 1980s rewarded aggression, risk-taking, and salesmanship over traditional values
- The mortgage bond market was created almost by accident and made fortunes for those who understood it
- Corporate culture can become toxic when compensation is disconnected from ethics
- Even brilliant traders and bankers can be driven by insecurity and the need to prove themselves
- Understanding the "Big Swinging Dick" mentality explains much of Wall Street behavior
Summary
An excellent book, both wildly entertaining and explaining the complexities of various financial markets with remarkable clarity.
This is considered a classic in the world of money, and for good reason.
It’s also an great book to read before reading (or watching) The Big Short, as it sets the stage for the financial crisis of 2008.
Who Should Read This Book
- Anyone curious about how Wall Street really works
- Finance professionals wanting historical context on the industry
- Fans of Michael Lewis's other books (The Big Short, Moneyball)
- Those interested in understanding the origins of the 2008 financial crisis
FAQ
What is Liar's Poker about?
Liar's Poker is Michael Lewis's memoir of working at Salomon Brothers in the 1980s. It exposes the culture of excess, the creation of the mortgage bond market, and the personalities that made Wall Street both wildly profitable and deeply dysfunctional.
What is "Liar's Poker" the game?
Liar's Poker is a gambling game played with serial numbers on dollar bills—you bid on how many of a certain digit appear across all bills in play. At Salomon Brothers, it became a test of nerve and bluffing ability, symbolizing the trading floor culture.
Click to expand comprehensive chapter-by-chapter breakdown (~15-20 min read)
