Wednesday 13 August 2014

Michael Lewis’s Flash Boys: Once Upon a Time on Wall Street



 The seductive appeal of Michael Lewis’s book about high-frequency trading on Wall Street – and the group of guys that got together to investigate and make the system fairer – is not merely the promise of learning more about the financial system and getting angry at how screwed up and misaligned the incentives are, although you will do that.


Obviously Lewis’s writing is a major part of it – the elegant effortless surface only partially concealing the structural and research muscle underneath, so that I am put in mind of a sleek but powerful mammal, an otter perhaps, or a mongoose.



Others have written very good reviews of the book as a whole (I’m a fan of John Lanchester’s, for instance). But what I want to talk about here is the structure, the narrative arc. I know that teaching people about the system, its problems and potential solutions is important for Lewis because that’s what he talks about in multiple interviews – and because anyone with any sense of justice or fairness should be outraged and want to know more about how the system has been rigged. 
But putting that complex explanation into a form that is not just simply expressed but has forward narrative momentum – that’s important too, or no matter how good the writing is people won’t keep reading. It came to me in a revelatory flash 12 hours after finishing the book (at 4am, I’m hoping this is one of those ideas that survives post-insomnia) that what Lewis has produced here – the sugary flesh helping us to swallow the hard seed of an idea that he wants to spread - is an aspirational fantasy as powerful (and as fictional in its way) as any 'Twilight' or '50 Shades'. The fantasy, though, is targeted not at romance-seekers but at disillusioned white-collar workers.






My insight is that we hope to be like the guys he writes about - and that's because the protagonists of Flash Boys are living the wet dream of 21st Century work. First and most importantly, they have the chance to do something societally moral and meaningful, something on the side of right – fixing a broken system. They get that chance of redemption even if they haven’t been consciously seeking it out, in some cases. For those of us who know the pain of doing work that probably doesn’t make any difference in the world at all, and if it does there’s a fair chance it’s on the wrong side, this would be fantasy enough. 


In addition, though, the guys that are in the team Lewis introduces have meaning in their own work on an individual day-to-day basis. They are repeatedly shown as having autonomy - to use their analytical/investigative/programming talents to their utmost, to think independently, to have the time to experiment and process ideas and make mistakes, even. They are engaged with work that uses their skills. 


And their individual value is recognized! And appreciated! Lewis is very good on thumbnail vignettes of interpersonal interaction, and repeatedly we see “odd” characters that maybe didn’t fit in or were seen as “difficult” at other jobs being given a chance in this team and having their oddness be seen as positively an asset, or at the very least a trait ignorable because of the rest of their expert strengths. For anyone sitting at a computer feeling undervalued or distanced from colleagues, this is the sort of wish fulfillment we fear is out of reach. A key example is the one-off appearance late in the book by Josh Blackburn, an employee at the new “fair” IEX stock exchange: He gets to transfer what he loved doing at his old job in the military to being able to be genuinely valuable at the new one by producing a data visualization tool for his boss – on his own initiative! – and receiving the boss’s gratitude for solving a problem before it was even officially brought to the employee. To be honest if this were fiction, I would say this section is an unnecessary hammering home of the theme (as well as being pretty unrealistic and an unhealthy manager-managee relationship – trying to preempt dominant guy’s wishes from stuff he sort of hints at around you? yuk) but in a non-fiction story I guess it also helps demonstrate the complexity of what the team are up against. 


The fantasy is topped off by the fact that not only having these characters bonded to serve a greater good, but they’re rewarded for it, both financially and in the form of increased status – we are repeatedly told about headhunters and more lucrative job offers from elsewhere – although of course, their loyalty and team belief keep them as part of the gang.



This is work as shown by Michael Lewis in Flash Boys: a beautiful ideal where effort is rewarded and goals are clear. It's work that's more like the job descriptions on recruiter pages and corporate mission statements than the common reality. Despite the fact that most of us don’t have this meaningful, engaging, well-respected and well-remunerated work, there’s whole life-coaching and headhunting industries (not to mention the entire neoliberalist socioeconomic construct) telling us that this is the aim – that we can not only make money from our efforts, but gain life fulfillment through doing our part in the capitalist engine room - and many of us still hope that it’s possible, somewhere, with the right company or the right team. We dream of meaning.



What Lewis has created, therefore, is the office-worker equivalent of Bridget Jones’s Diary – an addictive fantasy about what we are told to desire (which may not be what we actually desire). In this case, it’s meaningful, autonomous, well-regarded work rather than self-respect and a boyfriend, but the principle is pretty much the same: The reader is encouraged to put themselves in the place of the protagonists, to see these happy-ever-after dreams as nearly attainable from their own lives.



The question is, if Helen Fielding was working to a basic romance pattern of “girl gets scumbag-girl loses scumbag-girl gets hero”, what’s Lewis’s narrative template? I saw Michael Lewis speak about this book earlier this year and his “hook” in the talk and in interviews I’ve read is the team leader and guy that starts the investigation off, Brad Katsuyama – the “nice Canadian who didn’t want to be a radical” as Lewis sketches him. That may, possibly, be a good marketing ploy but – and I am pretty sure Lewis himself realizes this - it’s not a true reflection of the way the book plays out. Emphasizing Brad Katsuyama suggests that the overriding narrative is one man’s changed path, a “Hero’s Journey”. I would argue that it’s not. Instead the trope we’re looking at here is “Team on a mission”.



While Bridget Jones famously updates the classic romantic novel to the Twentieth Century, Lewis has created what is possibly the first “white-collar Western”[1] for the Twenty-First. Instead of Pride and Prejudice, the source material contemporized here is Seven Samurai, or a variation like Firefly. Brad Katsuyama isn’t Luke Skywalker: he’s Captain Mal, seeking out the best quirky characters for the job and standing by his code of honour until it makes him into a rebel almost despite himself.



Don't believe me? This is a group of guys with different skills banding together out of variously chequered pasts to do good for the helpless underdogs (well, big investors, but we don't care at this point) against the better-resourced, predatory bandits robbing them all - and coming out respected and at least partly victorious. If it were any more of a Western there’d be a saloon. Hell, you could pretty much assign the team members the standard Magnificent Seven roles with a bit of glossing.[2] (Also like a traditional Western? Women are nearly entirely absent, though apparently they’re being just super-supportive offscreen as their menfolk take risks.)



Now, all of those things are fictional and Lewis is telling a true story. And I’m absolutely positively sure that all his research is solid and is all the clearer for being given in digestible form – I do actually feel I understand now something about why speed was (and is) so important and how HFT and ‘dark pools’ screw the system. But the shape of the narrative – what details we get about the characters, which aspects of the journey’s difficulties are highlighted – is in the service of a team-up story that also functions as worklife fantasy. And that’s OK.

Just as the pulp Westerns were, even if based on real characters like Wyatt Earp, creating a myth of proud manliness and freedom from authority even as most readers knuckled under in cities and factories, now Lewis has created a myth that us regular white-collar schmucks can tell ourselves on the morning commute, about how one day we too might get our freedom to do meaningful, respected, expert work and take on the bad guys. The fact that he's done that while teaching us who some of the bad guys might be? Well that's just plain talent.



I love this book – for the new understanding gained as well as for the tantalizing hope that work like this can come true – but like most of its characters I enjoy puzzling out things that don’t make sense, and in this case, it was why I started thinking of Seven Samurai and Bridget Jones, at the same time. That solved, I’m satisfied - and I hope that if Michael Lewis reads this, he’ll not be too annoyed at the references to fiction, but know that I like and admire the book even more for the cunning with which the journalist-style investigation and the addictive myth are woven together into a seamless, readable whole.







[1] Nothing seems to come up on Google for this as a genre. I’m claiming it – and now Lewis has done it, I’m sure there’ll be more, it seems to fit the zeitgeist!


[2] Maybe a follow-up post. No time to track down the names in the book right now. Go ahead, if you want. I’d say Ronan’s probably both the Funny One and the Lancer, at first glance.

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