Michael Lewis Quotes

The more money to be made gaming the financial markets, the more people would decide they were put on earth to game the financial markets – and create romantic narratives to explain to themselves why a life spent gaming the financial markets is a purposeful life.

It's hard to make something that's interesting. It's really, really hard. It's like a law of nature, a law of aerodynamics, that anything that's written or anything that's created wants to be mediocre. The natural state of all writing is mediocrity... So what it takes to make anything more than mediocre is such an act of will...

The longer-term the option, the sillier the results generated by the Black-Scholes option pricing model, and the greater the opportunity for people who didn't use it.

The fuses had been lit and could not be extinguished. All that remained was to observe the speed of the spark, and the size of the explosions.

All that was clear that the profits to be had from smart people making complicated bets overwhelmed anything that could be had from servicing customers, or allocating capital to productive enterprise.

They traded in the market the way card counters in a casino played blackjack: They played only when they had an edge. That’s why they were able to trade for five years without losing money on a single day.

He walked around the Las Vegas casino incredulous at the spectacle before him: seven thousand people, all of whom seem delighted with the world as they found it. A society with deep, troubling economic problems had rigged itself to disguise those problems, and the chief beneficiaries of the deceit were its financial middlemen. How could this be?

"Liquidity" was one of those words Wall Street people threw around when they wanted the conversation to end, and for brains to go dead, and for all questioning to cease.

Nobody tells people who are beginners. I really wish someone had told this to me. Is that [if you are watching this video, you are somebody who wants o make videos right?] all of us who do creative work, we get into it. we get into it because we have good taste. you know what I mean? like you want to make TV, because you love TV. there is stuff you just like, love. ok so you got really good taste. you get into this thing … that i don’t even know how to describe it, but there is a gap. for the first couple of years you are making stuff, what you are making isn’t so good... ok, its not that great. it's really not that great. its trying to be good, it has ambition to be good, but not quite that good. but your taste, the thing get you into the game, your taste is still killer. your taste is good enough that you can tell what you are making is a kind of disappointment to you, you know what i mean? you can tell it is still sort of crappy. a lot of people never get past that phase. a lot of people at that point, they quit. the thing i would just like say to you with all my heart is that most everybody I know, who does interesting creative work, they went through a phase of years where they had really good taste, they could tell what they were making wasn’t as good as they wanted it to be. they knew it felt short. [some of us can admit that to ourselves, some of us less able to admit that to ourselves] we knew like, it didn’t have that special thing that we wanted it to have. [...] everybody goes through that. for you to go through it, if you are going through right now, just getting out of that phase, if you are just starting out and entering into that phase, you gotta know it is totally normal and the most important possible thing you can do is do a lot of work. do a huge volume of work. put yourself on a deadline so that every week or every month you know you’re gonna finish one story. you know what i mean? whatever its gonna be. you create the deadline. it is best if ha

The CDO was, in effect, a credit laundering service for the residents of Lower Middle Class America. For Wall Street it was a machine that turned lead into gold.

If your ambition is to maximize short-term gain without regard to the long-term cost, you are better off not knowing the cost. If you want to preserve your personal immunity to the hard problems, it's better never to really understand those problems. There is an upside to ignorance, and a downside to knowledge. Knowledge makes life messier. It makes it a bit more difficult for a person who wishes to shrink the world to a worldview.

You will be stupid. You will worry your parents. You will question your own choices, your relationships, your jobs, your friends, where you live, what you studied in college, that you were in college at all. If that happens, you're doing it right.

Why isn't someone smarter than us doing this?

Reg NMS was intended to create equality of opportunity in the U.S. stock market. Instead it institutionalized a more pernicious inequality. A small class of insiders with the resources to create speed were now allowed to preview the market and trade on what they had seen.

Spain and France had accumulated debts of more than ten times their annual revenues. Historically, such levels of government indebtedness had led to government default. “Here’s the only way I think things can work out for these countries,” Bass said. “If they start running real budget surpluses. Yeah, and that will happen right after monkeys fly out of your ass.”