Liar's Poker: Rising Through the Wreckage on Wall Street Study Guide

Liar's Poker: Rising Through the Wreckage on Wall Street

Liar's Poker: Rising Through the Wreckage on Wall Street by Michael Lewis

Salomon Brothers traded equities and bonds, but mainly the latter. The bond market exploded in the 80's due to two events:

  • The Fed announced that the money supply would be fixed, and interest rates would float.
  • America borrowed money at a faster pace in the 80s than ever before, from $323 billion in 1977 to 7 trillion in 1985.
  • The first year at Salomon is the training program. Class is segregated into first row (serious types, geeky) and back row (aloof, mischievous). Trainees sometimes abuse each other, but traders on the 41st floor abuse the trainees at will.

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