The Early Spark
In a sunny neighborhood of Encino, California, young Michael Milken loved to count things. He counted cars passing by his house. He counted the cookies in his lunchbox. He even counted the steps to school!
"Mom, I saved five dollars from my allowance this month!" little Michael said proudly one day. He was only seven years old, but he already knew how to save money.
Fun Fact: Michael was born in 1946. That's over 75 years ago!
Michael's father, Bernard, owned a small accounting business. At the dinner table, Bernard would talk about helping people manage their money. Michael listened with big, curious eyes.
The Little Business Boy
When Michael was ten, he started his first business. He set up a stand to sell candy to kids in his neighborhood. But Michael was different from other kids who sold candy.
"If you buy three candies today," he would tell his customers, "I'll give you an extra one free tomorrow!"
Michael learned something important: people like good deals! His candy stand made more money than any other kid's stand on the block.
School Days
In school, Michael was a super smart student. His favorite subject was math. He could solve problems faster than anyone else in class.
Michael's School Activities:
• Math Club President
• Student Council Member
• School Newspaper Writer
One day, his teacher Mrs. Johnson asked, "Michael, what do you want to be when you grow up?"
"I want to help businesses grow," Michael answered. "Just like my dad helps people with money."
Family Time
The Milken family was very close. Michael's mom, Ferne, always encouraged him to work hard. His younger brother, Lowell, looked up to him.
"Michael was always thinking of new ideas," Lowell would later say. "He never gave up when things got hard."
Learning About Money
When Michael was thirteen, his father gave him a special gift - his first stock market book. Michael read it cover to cover in just two days!
He started reading the business section of the newspaper every morning. While other kids read comic books, Michael studied stock prices.
Young Michael's Daily Routine:
1. Read business news
2. Go to school
3. Help at his candy stand
4. Do homework
5. Talk about business with dad
Even as a teenager, Michael showed signs of being a future business leader. He organized school fundraisers and always found ways to make them more successful than before.
Big Dreams
By the time Michael finished high school, he had big plans. He wanted to go to the best business school. He wanted to change how companies got money to grow.
"You can do anything you set your mind to," his mom always told him. Michael believed her.
With his sharp mind for numbers, kind heart, and big dreams, young Michael was ready for his next adventure. He didn't know it yet, but he would one day change the way Wall Street worked.Wharton and Wall Street Beginnings
In 1964, Michael packed his bags and headed to the University of Pennsylvania. He was going to study at the Wharton School, one of the best business schools in the world!
Big Move: Michael left sunny California for snowy Philadelphia to chase his dreams.
"This is where I'll learn to change the world," Michael thought as he walked through the big stone buildings.
College Life
At Wharton, Michael found something amazing - bonds! Bonds are like IOUs that companies use to borrow money. Most students thought bonds were boring, but not Michael.
"These bonds could help small companies grow big!" Michael told his professors. They were impressed by his smart ideas.
The Big Discovery
One day, while studying in the library, Michael made an important discovery. He found that some bonds that people thought were "bad" actually made good money!
"Everyone is looking at these bonds wrong," Michael wrote in his notebook. "They're like hidden treasure!"
First Job
After college, Michael got a job at a company called Drexel Burnham Lambert. It wasn't the biggest or most famous company, but Michael didn't care. He saw an opportunity.
Michael's Work Day:
1. Wake up super early
2. Study market numbers
3. Talk to companies
4. Find good deals
5. Work until late
Making His Mark
At Drexel, Michael worked harder than anyone else. He came to work at 4:30 in the morning! Other workers started calling him "The King of Bonds."
"Michael sees things others don't see," his boss would say. "He helps companies that other banks won't help."
Building Something New
Michael had a special way of thinking about bonds. He believed that if you studied companies really well, you could find good deals that others missed.
Did You Know? Michael helped many small companies grow into big ones by giving them money when other banks said no!
He started building a team of smart people who believed in his ideas. They worked in a special office in Beverly Hills, far from Wall Street.
Early Success
Companies started coming to Michael for help. He would say, "Tell me about your dreams. I'll help you make them real."
"Michael doesn't just give us money," one business owner said. "He gives us hope."
Family Man
Even while working hard, Michael didn't forget what was important. He married his high school sweetheart, Lori. They had three children and made sure to have dinner together every night.
Michael was changing the way Wall Street worked, but he was just getting started. His biggest adventures were still to come!
Every morning, he would tell his team: "Today, we're going to help another company grow." And they did, again and again. The Junk Bond Revolution
Michael was ready to change the world of money! He had a big idea about bonds that other people called "junk." But Michael knew better - these weren't junk at all!
Fun Fact: Michael gave these bonds a nice new name - "high-yield bonds." They helped small companies grow big!
Making Money Magic
In his special office in Beverly Hills, Michael worked with his happy team. They weren't like other Wall Street people in fancy New York offices.
"We help the companies nobody else wants to help," Michael would say with a smile.
Michael's Special Way
Every morning, company owners would come to see Michael. They had big dreams but needed money to make them come true.
"Other banks said no to us," they would say. "Can you help?"
Michael would listen carefully and look at their numbers. Then he would say, "Yes, I can help!"
Growing Success
Here are some of the cool things Michael's bonds helped build:
• Movie theaters
• Cable TV companies
• Food stores
• Toy stores
• Phone companies
The Money Teacher
Michael didn't just work - he taught others too! He started something called the "Predators' Ball." It was like a big party where people could learn about bonds.
"Michael makes hard things easy to understand," his students would say.
Breaking Records
Michael's office was making more money than anyone could believe! In one year, they made $4 billion - that's more money than anyone had ever made on Wall Street.
Amazing Fact: Michael was making $1 million every day at the peak of his success!
Helping Others
Even with all his success, Michael never forgot about helping others. He gave lots of money to schools and hospitals.
"Money is good when it helps make the world better," Michael would tell his children at dinner.
Working Hard
Michael still worked super hard. He woke up at 4:30 AM every day! His office had special phones that could call six people at once.
"Michael works harder than anyone I've ever seen," his co-workers would say.
Big Changes
Because of Michael's ideas, many small companies became big companies. He changed the way people thought about business.
Companies that nobody believed in became huge successes. Michael showed that giving chances to small companies could work!
Family First
Even though he was super busy, Michael always made time for his family. He flew home every night to have dinner with them.
"Family is more important than any business deal," he would say.
Making History
By the end of the 1980s, Michael had created something amazing. His ideas helped create millions of jobs and many new companies.
But with great success came big challenges. Some people didn't like how much money Michael was making. Storm clouds were starting to gather... ️The Height of Power
Michael was now the king of Wall Street! His office in Beverly Hills was buzzing with energy every day. People called him the "Junk Bond King" because he was so good at helping companies grow.
Amazing Fact: Michael made more money in one day than most people made in a whole year!
Living Large
Michael's life was like a fairy tale! He had a beautiful house and could buy anything he wanted. But he still wore the same simple suits and drove a regular car.
"Money doesn't change who you are inside," Michael would tell his children.
The Magic Office
His office was super special! It had six phones that he used all at once. People called it "Mission Control" because it looked like a space station.
"Michael can talk to six people at the same time and remember everything they say!" his workers would say in wonder.
Big Deals Every Day
Here are some amazing things Michael helped create:
• Big theme parks
• Famous movie studios
• Popular TV channels
• Giant stores
• Cool toy companies
The Money Party
Every year, Michael threw a huge party called the "Predators' Ball." Important business people from all over the world came to learn from him.
"It's like going to the best school in the world," people would say about his parties.
Helping Others Grow
Michael didn't keep all his secrets to himself. He loved teaching others how to be successful. His office was like a school where people learned about money.
Special Note: Michael helped over 3,000 companies grow bigger and stronger!
Working Super Hard
Even though he was super rich, Michael worked harder than ever! He started work at 4:30 AM every day and didn't stop until late at night.
"Hard work is the secret to success," he would tell everyone who asked.
Making Friends and Enemies
Many people loved Michael because he helped them make money. But some people were jealous of his success. They started saying mean things about him.
"He's too powerful," some people whispered. "He's making too much money."
Family Time
No matter how busy he was, Michael always made time for his family. He had dinner with them every night and helped his kids with homework.
"My family is my biggest success," Michael would say proudly.
Questions Start
But not everything was perfect. Some people started asking questions about how Michael made so much money. The government began watching him closely.
Michael kept working hard and helping companies grow. But dark clouds were gathering. Big changes were coming that would change everything...
Looking Forward
Even with all the questions and worries, Michael stayed focused on his work. He believed in what he was doing and kept helping companies grow bigger.
The world of Wall Street was changing fast. Nobody knew what would happen next, but everyone was watching Michael to see what he would do...Legal Storms Gather
Dark clouds started forming over Michael's amazing business world. The government thought he was doing things that weren't fair. ️
Big News: In 1989, Michael had to go to court to explain how he made so much money!
The Big Questions
People wanted to know if Michael played by the rules. The police and lawyers started looking at all his work. They had lots of questions!
"We need to check everything," the government people said. "Every single deal!"
Friends Go Away
Many of Michael's business friends got scared. Some stopped talking to him. His big office wasn't as busy anymore.
"Sometimes when you're in trouble, you find out who your real friends are," Michael told his family.
The Hard Choice
Michael had to make a very tough decision. The government said he could:
• Fight in court for a long time
• Say sorry and pay a fine
• Help them understand what happened
A Brave Decision
Michael decided to be brave. He would tell the truth and take responsibility. He wanted to protect his family and the people who worked for him.
"Sometimes doing the right thing is the hardest...
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