From Liar’s Poker to the Financial Crisis: How Wall Street’s Culture Created Modern Risk
Liar's Poker is one of those books that makes the recent past feel strangely distant. Reading it now, what stands out is not just how excessive the 1980s were, but how foreign the world it describes already feels. The Wall Street of shouting traders, crowded bond desks, and market edge built on access and instinct is close enough to recognize, yet far enough away to seem almost unthinkable. Two impressions kept returning as I read. First: the 1980s must have been a genuinely wild period in finance. Second: Wall Street does not just attract ambition; it attracts characters, and occasionally produces someone larger than life. At the center of Liar's Poker sits Lewis Ranieri, who feels almost mythological in retrospect. Starting in the mailroom and rising to lead the mortgage division at Salomon Brothers, he helped build a business that effectively printed money in the mid-1980s. It is easy to read his story as a pure version of the American Dream. But that reading is a li...