Sam Bankman-Fried with Michael Lewis

46 snips

Nov 21, 2023

Michael Lewis, acclaimed author of finance bestsellers like "Liar's Poker" and "Moneyball," joins the discussion to unpack the dramatic saga of FTX and Sam Bankman-Fried. They explore Bankman-Fried's duality as a genius yet morally ambiguous figure, tracing his rapid rise to a $26 billion fortune and subsequent downfall. Topics include the intricate balance of trust and deception in cryptocurrency, the swift collapse triggered by a leak, and the legal fallout following his conviction. Lewis offers insights on how wealth shapes character and societal impact.

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ANECDOTE

SBF's Early Life and Family

Sam Bankman-Fried's upbringing was unusual for a future billionaire.
His parents, Stanford law professors, were uninterested in material possessions.

INSIGHT

Wall Street's Shift

SBF's career path reflects modern opportunities.
High-frequency trading firms recruit math-savvy individuals, even those without financial ambitions.

INSIGHT

Effective Altruism's Influence

SBF adopted "effective altruism," aiming to earn big to give big.
This philosophy, originating from Oxford, emphasizes maximizing altruistic impact.

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Going Infinite

The Rise and Fall of a New Tycoon

Michael Lewis

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.

Moneyball

The Art of Winning an Unfair Game

Michael Lewis

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[2][3][5].

Liar's poker

Michael Lewis

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.

The big short

Inside the Doomsday Machine

Michael Lewis

The Big Short tells the story of the 2007-08 financial crisis through the lens of several key players who predicted and profited from the collapse of the housing market. The book focuses on characters such as Steve Eisman, Mike Burry, Greg Lippmann, and the founders of Cornwall Capital, who saw the impending disaster and made significant gains by shorting the market. Lewis explains the complex financial instruments and the systemic failures that led to the crisis, making the narrative both accessible and engaging.