“Investment bankers make money for a living.”

“What are the odds that people will make smart decisions about money if they don’t need to make smart decisions—if they can get rich making dumb decisions?”

“The relationship between the people and their money in California is such that you can pluck almost any city at random and enter a crisis. San Jose has the highest per capita income of any city in the United States, after New York. It has the highest credit rating of any city in California with a population over 250,000. It is one of the few cities in America with a triple-A rating from Moody’s and Standard & Poor’s, but only because its bondholders have the power to compel the city to levy a tax on property owners to pay off the bonds. The city itself is not all that far from being bankrupt.”

“I lived here my whole life and I've never been to this neighborhood.' And Big Mike finally spoke up. 'Don't worry,' he said. 'I got your back.”

“Managers tend to pick a strategy that is the least likely to fail, rather then to pick a strategy that is most efficient," Said Palmer. " The pain of looking bad is worse than the gain of making the best move.”

“There was but one question he left unasked, and it vibrated between his lines: if gross miscalculations of a person's value could occur on a baseball field, before a live audience of thirty thousand, and a television audience of millions more, what did that say about the measurement of performance in other lines of work? If professional baseball players could be over- or under valued, who couldn't?”

“I have this theory," says Andy Stone, seated in his office at Prudential-Bache Securities. "Wall Street makes its best producers intomanagers. The reward for being a good producer is to be made amanager. The best producers are cutthroat, competitive, and oftenneurotic and paranoid. You turn those people into managers, and they goafter each other. They no longer have the outlet for their instincts thatproducing gave them. They usually aren't well suited to be managers.Half of them get thrown out because they are bad. Another quarter getmuscled out because of politics. The guys left behind are just the mostruthless of the bunch. That's why there are cycles on Wall Street—whySalomon Brothers is getting crunched now—because the ruthless peopleare bad for the business but can only be washed out by proven failure.”