For the Kids

As we adjust to new economic realities, Michael Lewis is emerging as the financial meltdown’s most important voice. His Portfolio piece “The End” told us how we got here but it also illuminated his own failure, in the 1980s, to get the point across with his book Liar’s Poker. Meant to be a cautionary tale, it became instead an inspiration.But Lewis appears unwilling to let “The End” be his final, confessional comment on the matter. This weekend, as a new year and new administration are gearing up, Lewis has delivered another far more aggressive piece, this time in the New York Times (Part 1, Part 2). In it, he calls out, more strenuously than before, the fraud, incompetence, and willful ignorance behind the financial crisis and makes it clear that this fall’s efforts to resolve it were flawed at best. He also makes several direct, clear-eyed proposals to set things back on the right course. One hopes Obama is watching. One also notices that Lewis, in these pieces, is no longer acting as a journalist or even a columnist. He has thrust himself into the center of this issue, as if looking to finish what he tried to accomplish more than 20 years ago.But Lewis has grown up too. Liar’s Poker didn’t wake up the world to Wall Street’s ills because its tone was too glib and too incredulous. We were meant to marvel at the goings on at Solomon Brothers just as the young Lewis had. That tone is gone now, and Lewis has returned to the task with a fierce seriousness. Whether or not you agree with everything that Lewis is writing in these pieces, his tone, backed up by his more than 30 years of writing about Wall Street, will give even the most optimistic observers pause.Interestingly, Lewis’ co-author for the two New York Times pieces is David Einhorn, a hedge fund manager who doesn’t exactly have a pristine reputation. Einhorn heads up Greenlight Capital, which racked up average annualized returns of 25.5% from May 1996 through mid-2008, according to New York Times, though his funds, like many on Wall Street, have struggled since. He’s also a serious poker player. In 2006, he placed 18th in the World Series of Poker’s main event, winning more than $650 thousand that he donated to charity.Einhorn made headlines this year for his very vocal bearish stance on now defunct investment bank Lehman Brothers. Einhorn eventually went public with discrepancies that he and his analysts had found in Lehman’s numbers. Believed to be short (i.e. placing bets that the stock would go down) Lehman and other financial names, Einhorn was excoriated in a war of words on Wall Street as regulators targeted short selling among financial stocks. Lewis and Einhorn make it clear where they stand on that issue, calling short sellers, “the only market players who have a financial incentive to expose fraud and abuse.”After much confusion as the crisis played out in 2008, it may be that we are seeing whistle-blowers like Lewis and Einhorn emerge from the mess to take control of the discussion. In time we will see if they have the ear anyone in power.

Too many books, no easy way to read them all? A remarkable device was once conceived to solve this vexing problem. (via)

When I picked up my first Kurt Vonnegut book, Slaughterhouse-Five, I noticed the greatest literary feat I missed out on by growing up in Turkey. My friend Annastacia left a copy at our house and her boyfriend/my roommate Uzay read the book in a day, his first Vonnegut as well. Uzay was so startled that he urged me to pick it up immediately. I did as suggested and was much surprised and pleased. I have yet to read more of Vonnegut’s works but his stream of conscious style in Slaughterhouse-Five, the disjointed stories that flow together more like an epic poem, the simplistic wording that carries heavy thoughts and emotions, and the personal reflections mixed with fiction were most startling. It took me only a day to read Slaughterhouse-Five (I am usually a slow reader) and I felt that I should go back and reread it immediately to better grasp the stories contained therein. The combination of World War II stories that culminate in the bombing of Dresden, the life of a stereotypical suburban businessman in post-war America and his interactions with Tralfamodarian aliens are at times difficult to piece together. They do, nevertheless, connect on a certain, higher level, which I hope to better understand by reading more of Vonnegut’s works, following the characters that reappear in his novels and get a better sense of his outlook on matters of life and death. And so it goes.Around the same time that my friend John gave me Crash, he also gave me Jonathan Lethem’s The Fortress of Solitude. It took me a long time to get into The Fortress of Solitude. I picked it up in mid-summer and read about fifty pages and stopped. Then I saw The Squid and The Whale, which I liked very much, and the Brooklyn feel of it made me return to Lethem’s novel. I read another forty pages and stopped again. In the meanwhile, I was reading other books for fun or out of interest. Around Thanksgiving I picked up the novel again. I was preparing for my 2nd annual Chicago trip to visit Mr. and Mrs. Millions, brother Jozef and aunt Murvet, and I thought that a journey would be the best opportunity to turn to The Fortress of Solitude one last time. I am very glad I did, because now that I fully read Dylan Ebdus’s story I am mesmerized by Lethem’s style and the strong storyline that picks up after, for me at least, page 120 and accelerates until the reader hits the end. Dylan Ebdus is the sole white kid in a mostly black and Puerto Rican neighborhood in Gowanus, Brooklyn. Dylan, the only child of a not so successful painter and an eccentric hippie mother, is a total stranger to the culture of the block and is constantly “yoked,” i.e. bullied, humiliated and robbed, by his peers. One day Mingus Rude moves to the block with his once famous, now low profile, soul singer father Barrett Rude Jr. Mingus and Dylan become steady friends and slowly, sometimes painfully, Dylan embarks on a new path. While the first third of the novel is slow and establishes a strong setting, the second third flies by as the reader flips through the adventures of Mingus and Dylan in the ’70s, sees them drop out of high school/go to college, smoke a lot of dope, become crack/coke heads, discover and dive into music, and form their own tag team. The language is rich with graffiti, music and popular culture in the ’70s. At the third and final section of the novel the reader finds Dylan in Berkeley during the ’90s. A lot has changed except for his fascination with music and adaptation of a white-boy immersed in African-American culture life style. It is easy to empathize with Dylan as he tells his story through music ranging from Brian Eno to Talking Heads, Devo, the Temptations, Otis Redding, Marvin Gaye, Al Green, James Brown and Curtis Mayfield. Dylan’s struggles with his insecurities and search for identity are amazing portrayals with very strong supporting characters. There also is the parallel story of Aeroman and the ring, which I am still trying to decipher and digest. I am very glad to have read The Fortress of Solitude, it is, along with Jonathan Strange and Mr. Norell, one of my favorite reads in 2005 and I definitely intend to read more of Lethem’s writings in 2006.Part 1, 2, 3, 4, 5