This quotation is from chapter 2 . Holden's former teacher, Mr. Spencer, is chastising Holden about not being successful at Pencey. Basically Mr.Spencer lectures Holden about playing by the rules of the game of life. THrough this we are introduced to Holden's character as having both a keen counter-culture intellect and a giant adolescent chip on his shoulder that is full of angst and self-loathing. Holden puts on a veneer for his old teacher yet inside he identifies with those who chose not to play by the rules. Holden clearly understands that people play games and holds contempt for these people, they are "phoney". At the same time Holden comes from a privileged back ground and wants everything these "phoneys" play the game for.