The End of Wall Street’s Boom

November 13, 2008 by · Leave a Comment
Filed under: Opinion 

If you have read Liar’s Poker then you know who author, Michael Lewis is.  His original book was about the excesses of Wall Street in the 80’s and a insiders tale of what it was like in the investment firm, Salomon Brothers.  This article is very intriguing and sucked me into Lewis’s tale that covers our current events and even revisits some of Liar’s Poker to give some context.  

The star of his story is Meredith Whitney, a analyst with Oppenheimer Securities who had the fortitude to pose the charge that all these banks were seriously over-valued based on all these shoddy assets we now know as MBS (Mortgage-backed Securities) and CDS (Credit-default Swaps).  

I implore everyone to give this article a read, it is well worth the time.

To this day, the willingness of a Wall Street investment bank to pay me hundreds of thousands of dollars to dispense investment advice to grownups remains a mystery to me. I was 24 years old, with no experience of, or particular interest in, guessing which stocks and bonds would rise and which would fall. The essential function of Wall Street is to allocate capital—to decide who should get it and who should not. Believe me when I tell you that I hadn’t the first clue.

Full Article from Michael Lewis

 

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