77 books like The Wizard of Lies

If American Psycho is too bloody an evocation of hyper-capitalism for your stomach, try this tragically under-appreciated door-stopper of a novel, in which an eleven-year-old becomes a millionaire by playing the stock market. Written almost wholly in unattributed dialogue! As with Pynchon, everything written by Gaddis deserves to be on this list; alas, alas. 

This is the oldest book on my list, a nineteenth-century compilation of lunacy of all sorts, with a focus on financial lunacy. Mackay aptly compares widespread mass delusions (think Nostradamus, or alchemy) to financial bubbles, including the frenzies surrounding the South Sea Company in England and tulip bulbs in Holland. Some scholars question the historical accuracy of Mackay’s stories, particularly about valuable tulip bulbs being accidentally eaten, but he has the money quote of all time regarding financial scandals: “Men, it has been well said, think in herds. It will be seen that they go mad in herds, while they only recover their senses slowly, and one by one.” If you want a more scholarly description of how speculative bubbles form and burst, try Charles P. Kindleberger’s Manias, Panics, and Crashes. But if you want to be shocked and entertained, read Mackay.

Because I was a prosecutor on the Enron case, people often ask me what to read about it (or even to explain it to them!). At the time, we used to say that Enron was calculus to every other case’s algebra when it came to corporate financial fraud. Elkind and McLean (McLean had a lot to do with questioning Enron’s narrative before the company’s decline) have done the definitive job of explaining a very hard case in accessible style and detail. The truth is that accounting fraud is a very technical form of corporate fraud, sometimes painfully so. But, as I tell my students, the people who work at companies on these kinds of things are no smarter, and often no older, than my students. They just speak a different language. Don’t let that obfuscate matters. Learn the lingo and follow the money. Smartest Guys allows the general reader to… show more.

There should be at least one book about the 1920s on this list, and this one deserves mention because it elegantly brings to life several of the most interesting characters from that era. There are some dubious ones, such as Jesse Livermore, the “Boy Plunger” who operated bucket shops, shady financial firms that manipulated stocks with fake news. And there are more legitimate leaders of the era: Pierpont Morgan’s son, Jack, and his brainier partner, Tom Lamont, and the power brokers of Kuhn Loeb. Brooks vividly skewers all of them. He misspelled “Golkonda,” but the essence of his story nails the excesses of the era, and is an apt reminder of how much wealth and economic inequality can result from the Federal Reserve going wild with loose monetary policy.

Warner deftly weaves three narratives: the lurid life of the French aristocrat whose sexual exploits led to the coining of the term “sadism,” the fate of his most infamous work, and the collapse of a rare-book investment scheme devised by a man accused of being “the Bernie Madoff of France.”

It’s a lot of ground to cover, but this well-researched, well-crafted account hums along, introducing us to revolutionaries, surrealists, sexologists, high-end book collectors, and more, all fascinated by the handwritten scroll of 120 Days of Sodom.

And it raises questions about what makes a rare and suppressed book truly valuable – is it the unique history of its author, the dangerousness of its ideas, or its potential as an investment vehicle?   

Linguistics professor Maurer was fascinated by con-artist slang and subcultures, but this classic 1940 work is more than a sociology treatise.

It offers precious insights and yarns from the aristocrats of the underworld, the operators of the Big Con, a high-stakes form of flim-flammery that required many talented performers and thrived in the early years of the twentieth century.

(The fake betting parlor in the movie The Sting is a good example of how these folks operated.)

Maurer peels back the layers of a juicy world of crime and deception. 

This as-told-to memoir by Weil, better known as the Yellow Kid, is a crash course in grifts of all kinds, from petty barroom scams to elaborate shady deals in oil, stocks, and real estate.

Weil is a witty tour guide and a gifted impostor, posing as a geologist, banker, or tycoon as needed. To me, what’s most eye-opening is his total lack of compassion for his victims, whom he regards as greedy suckers who deserve to be fleeced.

Criminals rarely see themselves as in the wrong, and Weil’s efforts to justify his larcenous career make for an intriguing con played on the reader.  

Nobody was better than New Yorker writer Mitchell at capturing the gritty realities of the Bowery, but he met his match when he decided to profile Joe Gould, a Harvard-educated bohemian said to be working on a massive “Oral History of Our Time.”

Twenty years later, Mitchell returned to his subject and revealed the secret he’d learned shortly after the first piece was published: that Gould had perpetrated (with Mitchell’s unwitting help) one of the great literary hoaxes of all time – not out of greed or a desire for fame, but out of desperation and mental illness.

But is Mitchell giving us the straight story, or is there more he’s not telling? This labyrinth of smoke and mirrors still astonishes me. 

I began this book aware that it was inspired by one of the most striking scandals ever (no need to mention which). So, I can’t say that the pivotal twist came as a surprise. Quite the opposite—it felt a bit like starting an Agatha Christie thriller knowing that the butler did it.

However, I was completely captivated by the character of Vincent (who is, I can safely reveal, a woman) and the way the story is intricately crafted around her. I enjoyed every line of this tale, in which I found a brilliant example of how a plot can skillfully put the events at the service of the characters, allowing their psychological traits to take center stage.

Before Ponzi was a scheme, Ponzi was a man. His name was Charles Ponzi. He sailed to the US from Europe with nothing – after gambling away his nest egg during the trans-Atlantic crossing – and then made himself an ill-gotten fortune through a swindle so famous it is now named for him. I love learning history, but not through academic texts. I need to learn it through stories. And the critical ingredient that makes compelling narrative nonfiction are the details that enable me to see the characters and their world in my mind. Zuckoff’s book put me in Boston in 1920, with the sights, sounds, and odors to bring Ponzi and his victims to life.