The Poker Face of Wall Street
Format: PDF / Kindle (mobi) / ePub
Wall Street is where poker and modern finance?and the theory behind these "games"?clash head on. In both worlds, real risk means real money is made or lost in a heart beat, and neither camp is always rational with the risk it takes. As a result, business and financial professionals who want to use poker insights to improve their job performance will find this entertaining book a "must read." So will poker players searching for an edge in applying the insights of risk-takers on Wall Street.
might take the government’s money and make real investments—say, buying newly issued stock directly from companies. In that case, the guaranteed 13402_Brown_2p_04_r1.e,qxp 78 ♠ 1/30/06 9:26 AM Page 78 THE POKER FACE OF WALL STREET equity bonds resulted in real money being devoted to real economic effects. But what if that didn’t happen? What if the government didn’t buy stock? What if the people who sold stock to the government just spent or hoarded the money, and the people who bought
dropped down to even (1:1)? Now if you bet the $75 on the Braves you will get only $150 if they win, so you will take a $75 loss. If you don’t know what the future betting odds will be, derivatives have risk. THE CRASH OF ’87 That big risk came home to roost on Monday, October 19, 1987. I was out of town at the time. My wife and I had decided to take a three-day weekend to hike through foliage and stay in an upstate inn. The previous week had been bad in the stock market, and there was a
they lust for in their hearts. It just means the culture is not supportive of homosexuality. It’s not a good place for one romantic young man to find another—sexual taboos are if anything stronger than in mainstream society. You can be a homosexual, but don’t let anyone catch you practicing. Anyway, homosexuals often have a separate subculture that better meets their needs. Although sex data are notoriously unreliable, what empirical evidence there is suggests the incidence of homosexuality in
plan of retreat, you should stick to risks you can calculate. But if you do choose to embrace incalculable risks, there is a safety net of sorts: 4. Plan B is You. The only assets you can count on after a loss are the ones inside You: your character, your talents, and your will. You don’t have to relish the idea of being friendless and broke in a strange place, but the thought of it cannot fill you with despair. It’s not quite this bleak: There are some social structures and economic institutions
the textbooks: If you do something stupid, you suffer for it.” 13402_Brown_2p_06_r1.j.qxp 176 ♠ 1/30/06 9:27 AM Page 176 THE POKER FACE OF WALL STREET More Games and the People Who Play Them In high school, I played in a regular game with the debate club/chess club/calculus class crowd. National bridge champion and hedge fund manager Josh Parker explained the nuances of serious high school games players to me. The chess player did well in school, had no friends, got 800s on his SATs, and