Podcast Summary
In this podcast, best-selling author and financial journalist Michael Lewis joins host Natalie Brunell to discuss his career and his recent book “Going Infinite: The Rise and Fall of a New Tycoon,” which explores the rise and fall of Sam Bankman-Fried and FTX. Lewis shares his journey from aspiring baseball player to Wall Street writer, his interest in the potential of cryptocurrency exchanges, and his perspective on the societal and financial impacts of sudden wealth creation in the crypto space. The conversation also delves into the controversial figure of Sam Bankman-Fried, his influence on the political process, and the fall of FTX.
Key Takeaways
Michael Lewis’s Unexpected Career Journey
- From Baseball to Wall Street: Lewis initially aspired to be a professional baseball player and studied art history and archaeology. However, his passion for writing emerged during his senior year of college, leading him to a successful career as a financial journalist.
- Writing Under a Pseudonym: Lewis began writing about Wall Street under a pseudonym while working at Solomon Brothers. This experience gave him a sense of the audience’s interest in his writing and encouraged him to write his successful book “Liar’s Poker.”
Exploring the Crypto Space
- Interest in Crypto Exchanges: Lewis was intrigued by the potential for crypto exchanges to operate more equitably than traditional financial exchanges. He was particularly interested in the rapid creation of wealth in the crypto space and its social implications.
- Meeting Sam Bankman-Fried: Lewis’s interest in crypto was sparked by Sam Bankman-Fried, who was using the technology for his own purposes. This led Lewis to explore the subject further in his writing.
The Fall of FTX and Sam Bankman-Fried
- Bankman-Fried’s Recklessness: Lewis was surprised by Bankman-Fried’s recklessness, highlighted by an incident where Bankman-Fried instructed an employee to fabricate $50 million in revenue to reach a $1 billion total, despite it being unnecessary and illegal.
- FTX’s Collapse: Despite FTX’s collapse, FTT is still trading, with some believing the exchange could be rebooted and that there might be enough assets left to pay off everyone.
Bankman-Fried’s Influence on Politics
- Disproportionate Power: Lewis expresses concern about the influence of money in politics, particularly how it can lead to a small number of people having disproportionate power in a society with growing financial inequality.
- Bankman-Fried’s Political Activities: Bankman-Fried’s political activities are scrutinized, including his funding of pandemic prevention initiatives, efforts to counteract Trumpism, and discussions about legally bribing Trump not to run for president.
Michael Lewis’s Future Projects
- Adapting “Going Infinite: The Rise and Fall of a New Tycoon” into a Movie: Lewis discusses his book, which is set to be adapted into a movie. He mentions that he would have liked Jonah Hill to play the protagonist, Sam, but acknowledges that Hill might now be too old for the role.
- Working on a Television Show: Lewis reveals that he is working on a television show for Apple, a drama for which he has written the first script.
Sentiment Analysis
- Bullish: The podcast expresses a bullish sentiment towards the potential of cryptocurrency exchanges to operate more equitably than traditional financial exchanges. Lewis’s interest in the rapid creation of wealth in the crypto space and its social implications also reflect a positive outlook on the industry.
- Bearish: The bearish sentiment is evident in the discussion of the fall of FTX and Sam Bankman-Fried. Lewis’s surprise at Bankman-Fried’s recklessness and the subsequent collapse of FTX highlight the risks and challenges in the crypto space.
- Neutral: The podcast maintains a neutral sentiment when discussing the influence of money in politics and the need for regulatory reform. While expressing concern about these issues, Lewis also acknowledges the potential for significant change and improvement.
