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Gatsby, in his misery, tells Nick the story of his first meeting with Daisy. He does so even though it patently gives the lie to his earlier account of his past. Gatsby and Daisy first met in Louisville in 1917; Gatsby was instantly smitten with her wealth, her beauty, and her youthful innocence. Realizing that Daisy would spurn him if she knew of his poverty, Gatsby determined to lie to her about his past and his circumstances. Gatsby's story allows Nick, and us as readers, to understand his lies and desire for wealth at any cost.