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#1 2009-10-26 16:29:04
- tmc22
- Member
- Posts: 101
money and clothes, clothes and money
So I'm reading Andrew Ross Sorkin's Too Big To Fail, a day by day account of last year's monetary crisis from after the fall of Bear Stearns through through the aftermath of the Lehman collapse. Sorkin is a good writer and tells a riveting account of the insider conversations. He makes I suspect a calculated contrast between those enamored of the trappings of wealth and those who remain oblivious, ie Henry Paulson.
I'm a third of the way through but the most memorable portrait for me so far was of Warren Buffett sitting down one evening in April 08 after an approach by Lehman's Richard Fuld, sitting at the desk his father used, in his by mogul standards modest house, wearing an off the rack suit, going line by line through Lehman's 10K with a pencil, underling every questionable entry. After an hour he knew the story. Paulson knew it too in March of 08 (and there is a vignette about Paulson returning an expensive overcoat the day after purchasing it because his wife told him he had a perfectly good ten year old coat). Lehman was bankrupt in the Spring of 2008. It wouldn't be able to pay it's obligations. The surprising thing is that the guys who rode the jets, rode the helicopters, who bought the custom made suits who ran Lehman couldn't figure out what Buffett could figure out in an hour. Lehman was broke and the people who ran it didn't even know it.
That's Sorkin's story anyway. It's a great read.
#2 2009-10-26 20:58:00
- Marc Grayson
- Member
- Posts: 8860
Re: money and clothes, clothes and money
Someone once asked Buffett why a man of his means wears such cheap suits. His response was he wears expensive suits, they just look cheap on him.
"‘The sense of being perfectly well dressed gives a feeling of inner tranquility which even religion is powerless to bestow." Ralph Waldo Emerson
"Looking good and dressing well is a necessity. Having a purpose in life is not." Oscar Wilde
#3 2009-10-27 04:23:56
- r. rafael
- Member
- From: Allentown, PA
- Posts: 40
Re: money and clothes, clothes and money
You don't need to care so much about your suit when recognition of your face announces all of your accomplishments. The rest of us benefit from dressing well.
#4 2009-10-27 06:38:17
- Film Noir Buff
- Dandy Nightmare
- From: Devil's Island
- Posts: 9345
Re: money and clothes, clothes and money
Sorkin's a little naive about Paulson, and Madoff took everyone. I understand Madoff liked nice clothes but only one style of suit, shoe and shirt.
Sounds like Sorkin has his own agenda on image. Otherwise, I don't know what clothes have to do with success in business. I always considered clothes to be something of an outward show of your mental state and your self respect. I think you can be well dressed and clueless but I am pretty sure if you're a slob it will repulse people.
#5 2009-10-27 06:55:46
- Big Tony
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- Posts: 5478
Re: money and clothes, clothes and money
Agreed about Paulson, he could not have climbed to the top (as he did, prior to govn't "service") without being a play-a. Clothing revealing underlying mental state? That's good...we could have fun with this one...
"What sort of post-apocalyptic deathscape is this?"
"I don't want to look like a cock hungry sailor after all !!!"
"When it comes to infidelity, broken families, and reckless fatherhood, the underclass are amateurs."
#6 2009-10-27 09:48:04
- Film Noir Buff
- Dandy Nightmare
- From: Devil's Island
- Posts: 9345
Re: money and clothes, clothes and money
#7 2009-10-27 14:19:57
- Voltaire's Bastard
- Member
- Posts: 967
Re: money and clothes, clothes and money
“You know that saying, 'Caesar's wife is above suspicion'? Well I put an end to all that rubbish!"..”
#8 2009-10-27 15:00:28
- Film Noir Buff
- Dandy Nightmare
- From: Devil's Island
- Posts: 9345
Re: money and clothes, clothes and money
#9 2009-10-27 17:19:44
- tmc22
- Member
- Posts: 101
Re: money and clothes, clothes and money
I thought it was interesting. I urge people to read the book. judge for yourself. But I think the theme is there. Other very wealthy hedge fund managers he doesn't spend the time describing. I will say the theme resonated with the trad people. You may spend a lot of money on a suit but you keep it forever. Though Sorkin did push the way his heros from the Midwest (Buffett and Paulson) lived there lives. It is a book with heros, villains and schmucks. I know several Wall Stret people write in here. it would be interesting to hear your perspective on the story. Reading it as an amateur investor and getting half way through, I just couldn't believe that the Lehman people who were supposed to know money diidn't know what their position was in the Spring of 2008 when the stock was still at 40. They had to sell at any price and they just didn't know it. The book is excerpted in this month's Vanity Fair. Jamie Dimon comes out alright but not a hero. John Mack comes out a hero.
Last edited by tmc22 (2009-10-27 17:21:58)
#10 2009-10-27 18:57:14
- tmc22
- Member
- Posts: 101
Re: money and clothes, clothes and money
PS: Another interesting foot note. During the panic everyone was calling Buffett. They knew the mention of his investment would be the gold standard. If you culdn't get it, no matter who you were, you were at risk.
#11 2009-10-27 19:01:08
- tmc22
- Member
- Posts: 101
Re: money and clothes, clothes and money
PPS: I always enjoy Voltaire's posts. Now I bet he has an interesting background story. thanks and a hat tip. tom
Last edited by tmc22 (2009-10-27 19:04:10)
#13 2009-10-31 19:32:29
- Voltaire's Bastard
- Member
- Posts: 967
Re: money and clothes, clothes and money
“You know that saying, 'Caesar's wife is above suspicion'? Well I put an end to all that rubbish!"..”
#14 2009-10-31 19:34:09
- Voltaire's Bastard
- Member
- Posts: 967
Re: money and clothes, clothes and money
“You know that saying, 'Caesar's wife is above suspicion'? Well I put an end to all that rubbish!"..”