Prisoner of X

The Book of the Week is “Prisoner of X” by Allan MacDonell, published in 2006. This ebook is a career memoir of an employee of the pornographic media empire of Larry Flynt. It might be recalled that Flynt was a champion of free speech, especially when it came to the dissemination of pornographic materials.

The main publication of Flynt’s empire is Hustler magazine, introduced in July 1974. Flynt established his own distribution networks for his magazines. This did not sit well with an organized crime group, which allegedly pumped a few bullets into Flynt’s body, rendering him a paraplegic in March 1978.

In the early 1980’s, MacDonell finally got a chance to work for the esteemed Flynt. Early in his career, he admittedly had trouble with substance abuse, partaking daily of one or more of the following: “… social opiates, medicinal cocaine, recreational painkillers or mandatory alcohol.”

In the late 1990’s after former president Bill Clinton’s sexual indiscretions had been revealed, MacDonell supervised the research that was to expose the sexual indiscretions of the American politicians who had criticized the philandering Clinton.

Read the book to learn the details of why Flynt deliberately reveled in playing the role of attention whore, the kinds of characters who peopled his organization, and the author’s own love life, interspersed with unsavory anecdotes of the behind-the-scenes goings-on in publicizing the skin trade.

Why I Left Goldman Sachs

The Book of the Week is “Why I Left Goldman Sachs” by Greg Smith, published in 2012.

This career memoir details how the author experienced the change for the worse in corporate culture of stock brokerage Goldman Sachs (GS) over the course of a little more than a decade, from 2000 to early 2012. The company lost its way in terms of its mission and values, which embodied fiduciary duty and integrity.

In 2000, the author completed the selective, elitist, highly coveted summer internship program at the brokerage. He saw how principled the money managers were in recommending truly suitable transactions to their clients; not necessarily the most profitable ones.

When he began working there as a full-fledged staff member the following year, he took to the work, possessing the right combination of talents, skills and abilities to focus for long hours on conferring with clients and doing what was financially best for them. The goal was to build trust in order to foster a long-term relationship. It stands to reason that that is a more profitable course of action than seeking to rake in maximum money in the short term– which would provoke disloyalty from the client, when the client realizes he’s been taken advantage of.

Smith writes that a gradual change was occurring at his workplace around the start of 2005. At the time, he admittedly was “drinking the Kool Aid” like everyone else. The megabucks were multiplying because conflicts of interest were increasing betwen the brokerage and the government and other entities with which the brokerage was associated in various ways. The CEO and COO of GS were all for it. Their yearly letter to shareholders reasoned that such conflicts were inevitable, and were a sign that business was good. A telling example: GS netted approximately $100 million when it helped its client, the New York Stock Exchange merge with publicly traded, electronic exchange Archipelago in a $9 billion deal.

In the early 2000’s, one trend in the securities industry that would contribute to huge financial losses for the big firms including GS, was automated trading via software. The autotraders of the different firms were programmed to engage in largely the same behavior. They sought to trade in obscure, off-the-beaten path investments in markets in which it was difficult to find a buyer when it came time to sell. And they were all trying to sell at the same time. That was not a condition the autotrader creators had anticipated.

Another aspect of the big picture was that the people selling the financial products– more specifically, derivatives– did not themselves, understand what they were selling. It might be recalled that a derivatives debacle plagued the securities industry in 1994. Apparently, in 2007-2009, the greedy people involved in this rerun of a financial catastrophe failed to read their history, or had short memories. And governments of entire countries like Libya, were suffering losses of billions of dollars, thanks to GS, in 2007.

Read the book to learn much more about the outrageous occurrences borne of avarice witnessed by the author and the world during what became for him, an ordeal, characterized by the saying, “The fish rots from the head down.”

My Mistake

The Book of the Week is “My Mistake” by Daniel Menaker, published in 2013. This is the autobiography of a well-educated Northeastern American male typical for his generation who, born in the 1940’s, entered the publishing profession. However, his mother was exceptional for her generation in that she was an editor at Fortune magazine.

At the then-academically rigorous Swarthmore College, during spring of his senior year, Menaker was “… taking Honors exams– eight three-hour written exams and eight oral exams, all administered by professors from other colleges.” He spent most of his career at The New Yorker, and then switched to Random House about a year after Tina Brown took over the magazine in 1992. He wrote that she halved the quantity of fictional stories appearing in the publication, and employees of both the fiction and nonfiction sections competed with each other in kissing up to her to get their pieces published.

Read the book to learn the details of Menaker’s work, of a traumatic event involving his older brother, and his bout with cancer.