To quote one of my favorite movies, The Departed - "To keep things on an even keel".
However, people lie for many different reasons. However, I find one of the biggest reasons is that they feel inadequeate in their personal lives.
Compulsive liars/exaggeraters have extremely low self-esteem (Jesus, I hate that word :P) and they lie to make themselves seem more interesting, because they believe that they are uncool or unworthy in social situations.
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