The Gray Area with Sean Illing

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The lessons of Sam Bankman-Fried

Oct 16, 2023

Guest

Michael Lewis

Michael Lewis, best-selling author of titles like "Moneyball," dives into the meteoric rise and catastrophic fall of Sam Bankman-Fried in his latest work, "Going Infinite." He shares fascinating insights from shadowing Bankman-Fried, unraveling the financial mishaps that led to the FTX crash. Lewis explores the complexities of Bankman-Fried's polarizing persona and the philosophical tensions in finance, highlighting the entanglements of wealth, ethical dilemmas, and the allure of cryptocurrency in today's age.

55:37

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ANECDOTE

Moneyball Backlash

Michael Lewis compares the reaction to his SBF book to the backlash he received after publishing Moneyball.
The baseball scout community was furious, similar to the crypto community's current outrage.

insights

INSIGHT

Initial Impression of SBF

Michael Lewis's initial impression of SBF was excitement, not suspicion.
He was fascinated by SBF's rapid wealth accumulation and disruptive approach to various systems.

insights

INSIGHT

SBF's Authenticity

SBF's eccentric persona wasn't contrived; it was his genuine self, unchanged by wealth.
His ability to explain complex topics simply made him approachable and less off-putting than typical tech geniuses.

Get the Snipd Podcast app to discover more snips from this episode

Unpacking Bankman-Fried's Polarizing Persona

04:19 • 14min

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Unpacking the Alleged Crimes of Sam Bankman-Fried

18:03 • 3min

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The Rise and Fall of a Crypto Empire

21:24 • 13min

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Exploring Financial Lessons from Recent Losses

34:13 • 3min

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Infinity and Crypto: A Delicate Dance

36:46 • 4min

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Altruism and Ambivalence in Finance

40:42 • 5min

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The Rise and Fall of a Controversial Figure

45:41 • 12min

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In this ground-breaking book, Katy Milkman reveals a proven path to help readers move from where they are to where they want to be. Drawing on her original research and the work of her world-renowned scientific collaborators, Milkman shares strategic methods for identifying and overcoming common barriers to change, such as impulsivity, procrastination, and forgetfulness. The book offers innovative approaches like 'temptation bundling,' using timely reminders, and creating 'set-it-and-forget-it systems' to make change more achievable. It emphasizes the importance of tailoring solutions to specific roadblocks and using science to stack the deck in favor of successful change.

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Going Infinite

The Rise and Fall of a New Tycoon

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In 'Going Infinite', Michael Lewis delves into the life of Sam Bankman-Fried, the enigmatic founder of the failed cryptocurrency exchange FTX. The book provides a psychological portrait and a financial roller-coaster ride, tracing Bankman-Fried's trajectory from becoming the world's youngest billionaire to his eventual downfall. It covers topics such as high-frequency trading, cryptocurrencies, effective altruism, and the justice system. Despite criticism for its sympathetic portrayal of Bankman-Fried, the book offers a fascinating insight into the complex world of cryptocurrencies and the character of its central figure.

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The book tells the story of the Oakland Athletics' 2002 season, where General Manager Billy Beane and his assistant Paul DePodesta used advanced statistical analysis, known as sabermetrics, to assemble a competitive team despite a limited budget. The approach, pioneered by Bill James, focused on metrics such as on-base percentage and slugging percentage rather than traditional measures like batting average and runs batted in. This data-driven strategy allowed the Athletics to compete with teams having much larger payrolls, like the New York Yankees, and achieve significant success, including a 20-game winning streak and a playoff appearance.

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Liar's Poker is a non-fiction, semi-autobiographical book that details Michael Lewis's three-year tenure at Salomon Brothers, one of Wall Street's premier investment firms in the 1980s. The book provides a behind-the-scenes look at the culture of bond traders, highlighting the frat-boy camaraderie, killer instincts, and high-stakes games of bluffing and deception. Lewis describes the creation and use of mortgage bonds, the excessive bonuses, and the ruthless competition among traders. The narrative also touches on the author's disillusionment with the industry, leading to his resignation and transition into financial journalism.

Michael Lewis joins Sean Illing to discuss his new book about Sam Bankman-Fried, Going Infinite: The Rise and Fall of a New Tycoon. They talk about the FTX crash, what Lewis learned while shadowing Bankman-Fried, and what SBF’s rise and fall says about us and our financial systems.

Host: Sean Illing (@seanilling), host, The Gray Area

Guest: Michael Lewis, author, Going Infinite: The Rise and Fall of a New Tycoon

References:

Going Infinite: The Rise and Fall of a New Tycoon by Michael Lewis (W.W. Norton & Company, 2023)

The Big Short: Inside the Doomsday Machine by Michael Lewis (W.W. Norton & Company, 2010)

The Blind Side: Evolution of a Game by Michael Lewis (W.W. Norton & Company, 2007)

Moneyball: The Art of Winning An Unfair Game by Michael Lewis (W.W. Norton & Company, 2004)

Liar’s Poker by Michael Lewis (W.W. Norton & Company, 1989)

“Sam Bankman-Fried tries to explain himself” by Kelsey Piper (Vox, Nov. 2022)

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This episode was made by:

Engineer: Patrick Boyd
Deputy Editorial Director, Vox Talk: A.M. Hall

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