American Sucker
by David Denby

Mar 2006

A Writer's Tale of Market Madness

David Denby is a writer's writer. This is one of the few books—perhaps the only one—I have bought out of pure appreciation for the style.

Being a student of financial markets and a lover of market lore, I first browsed 'American Sucker' in a local bookstore, mildly intrigued by the premise of a wide-eyed innocent enticed into the boom. A quick perusal would be enough, I thought. No need to take this one home.

Reading the book, though, I became enthralled with the craftsmanship of Denby's style; the prodigious yet skillful use of commas; the stream-of-consciousness witticisms; the lyrical transitions from thought to thought. It was an elegance I had neither foreseen nor expected… but, as a scribbler myself (argh, pretension), something I immediately responded to. I must confess to borrowing some of Denby's panache for this review; in fact I think his writing habits have indelibly influenced mine. Hopefully not too much, though. Style-rich writing is like a good piece of New York cheesecake: best enjoyed in small portions.

Enough about writing already. A compelling tale of one man's descent into financial madness, 'American Sucker' is an intellectual descendant of Mackay's "Extraordinary Popular Delusions and the Madness of Crowds," or perhaps a one-man addendum to Kindleberger's "Manias, Panics & Crashes." Taking in Denby's lucid and erudite contemplation of the great dot com debacle, even as the bubble bursts before his very eyes, is like witnessing a slow motion train wreck. You want to reach back through space and time, grab this small man by the shoulders and shake some sense into him, shouting: How is it sir, how can it be, that you can recognize what is happening, yet do nothing? How can you watch the walls crumbling, and yet not run? Take shelter, take profits, protect yourself!

But the fact that, in the face of available evidence, Denby does not protect himself, does not do the rational or wise thing, is precisely what makes this book so fascinating. It uncovers the raw elements of human nature that are purely and bluntly atavistic, the hopeless insecurities and caveman quirks that lead us astray in this modern world.

American Sucker is not just a nice piece of writing. It is an unflinching look at the painful, irrational tendencies that are embedded, perhaps hard-wired, in everyone (which can only be overcome through hard-won discipline, typically acquired at great cost). Sometimes we do stupid or outrageous things for incomprehensible reasons—not because we are incorrigible fools, but because of the inevitable flaws in our genetic makeup, societal foibles embedded in the human psyche, mental lacunae where emotion reigns and reason is blotted out. Denby communicates all this with a flourish of naked honesty and a keen ear for the reader experience, composer-like in his deft variation of emotional themes: excruciating, maddening, sympathetic, playful, triumphant.

In the end, what you have is a cautionary tale, a brief lesson in sociology, psychology and hubris, a beautifully written memoir, and perhaps—though I am not much of a judge—a notable literary achievement. For those who enjoy an exquisite piece of writing, have a more than passing interest in market lore, or possess an appreciation and a sympathy for the basic human condition, you would not be a sucker to buy this book.