A weaker money won out in terms of adoption over a harder money

Tuesday, October 24th, 2023

From papyrus-based bills of exchange to double-entry booking and paper banknotes, Lyn Alden explains, the main purpose of banking was to enable transactions to move more quickly and frequently than the transportation and verification of physical gold would allow:

Banking also allowed for the usage of more extensive credit systems, by allowing a third party (a money changer or a bank) to serve as a trusted intermediary between two non-trusting entities (buyers and sellers, or creditors and debtors).

In other words, banking allowed for transactions (commerce) and settlements (money) to be separated. Transactions for individual goods and services could occur more frequently, existing for a period of time in a state of credit, until they were settled with precious metals in less frequent occurrences and in larger amounts. However, while this process of batching multiple transactions into fewer and larger settlements increased transaction efficiency and reduced the risk of theft, it couldn’t overcome a fundamental constraint: the speed of information.

For thousands of years, transactions and settlements had the same maximum speed limit: the speed of foot, horses, and ships.

[…]

However, with the invention of the telegraph, and then the telephone, the speed of transactions increased to nearly the speed of light. The first working telegraph was invented in the 1830s. Engineers then spent much of the 1840s and 1850s figuring out how to run cables over long distances, including under large bodies of water, during which time they were able to connect the various financial centers of Europe together, including London and Paris. After some failed attempts, the first long-lasting transatlantic telegraph cables were put in place in the 1860s, and the global banking system quickly became more interconnected in the decades that followed.

[…]

All around the world, people and institutions increasingly relied on interconnected bank accounts rather than coinage. And with currency units abstracted from the underlying metal, it turned currency units into an inherently political topic between creditor groups and debtor groups.

[…]

The more and more efficient the global banking system became at netting and clearing imbalances, the less and less it needed metal as a proportion of transactional volumes and saving volumes during the normal course of operation. And consumers happily went along with it as well, due to the greater ease that it provided them with. And yet this increasing efficiency is precisely what allowed it to become so unbacked and unstable at its foundation. The disinclination of most people to want to withdraw and secure the cumbersome physical metals allowed for the extreme proliferation of gold claims relative to the amount of actual gold.

By the early 20th century, thanks to this extreme degree of monetary abstraction and the associated ease of claim creation for World War I approximately four decades after Jevons’ book, the global gold standard collapsed and never recovered. In the decades after that, governments eventually dropped gold and silver backing from their financial systems entirely, and that’s how we eventually got to this world of 160 different inflationary fiat currencies — each with a local monopoly in their respective jurisdiction.

[…]

This is the only time in history where, on a global scale, a weaker money won out in terms of adoption over a harder money. And it occurred because telecommunication systems introduced speed as a new variable into the competition.

He seldom finishes anything

Monday, October 23rd, 2023

Elon Musk by Walter IsaacsonElon Musk was a good student, Walter Isaacson’s notes (in his biography of Elon), but not a superstar:

When he was nine and ten, he got A’s in English and Math. “He is quick to grasp new mathematical concepts,” his teacher noted. But there was a constant refrain in the report card comments: “He works extremely slowly, either because he dreams or is doing what he should not.” “He seldom finishes anything. Next year he must concentrate on his work and not daydream during class.” “His compositions show a lively imagination, but he doesn’t always finish in time.” His average grade before he got to high school was 83 out of 100.

After he was bullied and beaten in his public high school, his father moved him to a private academy, Pretoria Boys High School. Based on the English model, it featured strict rules, caning, compulsory chapel, and uniforms. There he got excellent grades in all but two subjects: Afrikaans (he got a 61 out of 100 his final year) and religious instruction (“ not extending himself,” the teacher noted). “I wasn’t really going to put a lot of effort into things I thought were meaningless,” he says. “I would rather be reading or playing video games.” He got an A in the physics part of his senior certificate exams, but somewhat surprisingly, only a B in the math part.

There is no direct, urgent reason to do the best possible job

Sunday, October 15th, 2023

The actual way delegation works, Byrne Hobart suggests, is to resist the entropic force that makes some problem look like a rounding error:

This shows up everywhere: Salesforce won’t miss its numbers this quarter because one particular salesperson is a little slow. McDonald’s won’t need to write down the value of its intangible assets because one bathroom isn’t cleaned thoroughly. Very few companies have died entirely because of excessive travel expenses (though it’s often an early sign of other failures to control spending).

Anyone making decisions at this level can be fairly confident that there is no direct, urgent reason to do the best possible job. And yet, if you indicate to a Salesforce salesperson, however subtly, that you might someday be a source of annual recurring revenue, you will hear from them a lot. And if you visit a McDonald’s it will generally have pristine, gleaming bathroom facilities (at least if you adjust for the foot traffic a typical location gets).

Delegation is, essentially, a relentless quest to make the individual decisions that are a rounding error for the company feel like weighty and important matters for whoever makes them. That can’t be done entirely by fiat; there’s some flexibility required because circumstances often change in a way that a) does change the optimal behavior for a given employee, but b) doesn’t reach the level of importance that would require attention from the CEO or board of directors.

What makes these organizations work is that they’re consistently breaking high-level incentives down into granular ones that actually affect people’s behavior without locking them into some approach that doesn’t make sense. It’s not a good idea for a company with a sales team of thousands to set a quota for firmwide cold calls, for example; the level at which that kind of quota should be set is the level at which someone can see whether their team is getting better results from cold calls, cold emails, events, requests for referrals, or any of the other tools in the salesperson’s kit. So the devolution is that highly specific key performance indicators matter at the lowest level, and as they percolate up they get more general and abstract, until they roll up to numbers that make sense across almost every industry: revenue, some indication of margins, some measure of return on investment, and some proxy for making sure the business actually generates cash in a timely fashion.

This is most visible in franchise companies. From an investor’s perspective, a franchise business looks very low-risk: it’s capturing a fairly fixed piece of the upside from a brand, without all the messy operational intensity of buying or building a location, staffing it, and operating it. But from an operating perspective, it’s a nightmare. Every time Starbucks opens a new location, it’s betting a brand worth tens of billions of dollars on one store, and, really, on every worker in that store. Any bad decision at the lowest level can threaten the brand equity of the entire business.

This may be why franchise-based models eventually slow down. After a while, the accumulated value of the business is so high, and the marginal benefit of one location so relatively low, that it doesn’t make sense to risk so much brand equity on one more spot. Meanwhile, the existing store base is, presumably, continuing to compound the value of the brand, so a store-growth model slowly shifts to a same-store-sales based one.

The implementation of this is, in practice, signing a monstrously detailed franchise agreement, with the agreement devoting lots of space (starting on page 57 in this case) to enumerating all of the additional training sessions that will be required to cover material not mentioned in the agreement itself.

Any big company is, in historical terms, a miracle of human coordination. It’s astounding that on any given day, 2.3 million Walmart associates spend their workday more or less the way Walmart CEO Doug McMillon wants them to. That’s more direct influence on human behavior than historical heads of state could command. And entropy constantly pushes against this coordination working. The profits a company produces, and the share price that represents the expected future sum of those profits, is the source of organizational negentropy that justifies the otherwise herculean task of keeping everyone on task.

Even as he made the pledge, he was secretly buying up shares of Twitter

Monday, October 9th, 2023

Elon Musk by Walter IsaacsonWalter Isaacson addresses Elon Musk’s need for risk and drama early in his biography:

“Elon wants risk for its own sake,” says Peter Thiel, who became his partner in the early days of PayPal. “He seems to enjoy it, indeed at times be addicted to it.”

[…]

“I was born for a storm, and a calm does not suit me,” Andrew Jackson once said. Likewise with Musk.

[…]

“He is a drama magnet,” says Kimbal. “That’s his compulsion, the theme of his life.”

[…]

“I need to shift my mindset away from being in crisis mode,” he told me, “which it has been in for about fourteen years now, or arguably most of my life.”

[…]

Even as he made the pledge, he was secretly buying up shares of Twitter, the world’s ultimate playground.

The people who are crazy enough to think they can change the world are the ones who do

Tuesday, September 26th, 2023

Elon Musk by Walter IsaacsonWalter Isaacson’s Elon Musk biography opens with two quotes:

To anyone I’ve offended, I just want to say, I reinvented electric cars and I’m sending people to Mars in a rocket ship. Did you think I was also going to be a chill, normal dude?

— Elon Musk, Saturday Night Live, May 8, 2021

The people who are crazy enough to think they can change the world are the ones who do.

— Steve Jobs

Extreme success comes from mastering games and metagames

Monday, September 25th, 2023

One very abstract way to understand people’s skills, Byrne Hobart suggests, is to think about their relative ability to execute some known task versus their ability to continuously reinvent themselves and determine what they ought to be doing differently:

Warren Buffett’s career has been justifiably studied because of his extreme skill at the first, but Charlie Munger made a major contribution to Buffett’s track record by pushing him to reevaluate where he focused his energy. Buffett and Munger both did plenty of scrappy deals early in their careers, buying mediocre companies at a massive discount to their fair value and selling once that value had been reached. But it’s a lot harder to do that at scale. You can find profitable or potentially profitable companies trading at less than net cash if you’re looking at $50m market caps and below, but it’s not going to happen if your cutoff for a needle-moving investment is a $5bn or $50bn market cap instead.

Munger’s story is a good case study in skill and serendipity: he might have been a fairly successful LA-based real estate developer and lawyer with a reputation for loquacity if he hadn’t tied up with Warren Buffett. On the other hand, if Warren Buffett hadn’t gotten the message on quality businesses from Munger, perhaps he’d be an oddball Omaha fixture, a frugal guy who made millions but not billions investing in textiles, local banks, steel mills, and the like. Extreme success comes from mastering games and metagames, and in this case it was a team effort, with Munger handling the metagame and Buffett excelling at whatever the specific game happened to be.

One frustrating note about this book [Damn Right: Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger] is that it just doesn’t give enough detail about Munger’s transition from someone who earned a salary and made investments on the side to full-time capitalist. It’s surprisingly hard to find details about Munger’s hedge fund in the 60s and 70s (it’s easy to find their biggest positions, but one of those positions was a closed-end fund that Munger & Co. took over in order to redirect its investments into better businesses. But which!?). And the book sadly omits this story, about how Munger would be worth multiples of what he has today if he’d bought one more small block of an obscure oil company in the 70s, which sold for 30x his cost a few years later. (This is a good case study in why you shouldn’t overrate luck: in an alternate world where Munger had bought that stock, clever people might point out that 80% of his net worth ultimately derived from one decision to call a broker back and make a trade. Whereas what probably really happened was that not making the trade meant that it took a few more years for Munger’s capital base to reach the point where it compounded closer to 15% annually than 30%.)

Why do people work for Musk?

Wednesday, September 20th, 2023

Why do people work for Musk?, Scott Alexander asks:

The book paints a pretty grim picture of working at a Musk company. Employees get handed near-impossible problems, chewed out or fired if they fail, and barely thanked at all if they succeed. Work weeks are 90+ hours. Vance says Elon sent an angry email to a marketing guy who missed an event because his wife was giving birth, telling him to “figure out where your priorities are” (Elon denies this). So why do thousands of people, including the very best and brightest who could get jobs anywhere, work for him?

The cliche answer — that they believe in the mission — is mostly true. But many employees also talked about their past jobs at Boeing or GM or wherever. They would have some cool idea, and tell it to their boss, and their boss would say they weren’t in the cool idea business and were already getting plenty of government contracts. If they pushed, they would get told to file it with the Vice President of Employee Feedback, who might hold a meeting to determine a process to summon an exploratory committee to add it to the queue of things to consider for the 2030 version of the product.

Meanwhile, if someone told Elon about a cool idea, he would think about it for fifteen seconds, give them a million dollars, and tell them to have it ready within a month — no, two weeks! — no, three days! For some people, the increased freedom and the feeling of getting to reach their full potential was worth the cost.

Only the bow-mounted parafoil passed the sniff test

Sunday, September 17th, 2023

Michael Barnard has been looking at ways to make wind energy a thing for cargo ships again for at least a decade:

Few of the them appear to make much sense in context of the shipping industry. Many appear to be motivated by romanticism rather than pragmatism.

That’s why sails are in the sexy but foolish quadrant of my sexy vs meh decarbonization assessment of maritime shipping, along with hydrofoils (which I love on tiny pleasure water craft like wing foils) and hydrogen (which is just as nonsensical as a shipping fuel as it is a trucking fuel).

The only solution I’d seen which managed to cross over at least partially into the practical quadrant was bow-mounted parafoil power assist. The reasons are pretty straightforward.

Ships are high-tech simplicity. They have big engines, they love to run in straight lines at the same speed for days or weeks at a time, small crews can run huge ships and they are optimized to fit through canals and into ports globally. They exist in a complex business model where one organization builds them, another owns them, another operates them, another registers them, another insures them, another fuels them, and yet another owns the cargo that they carry.

The firm that pays for the ship is usually different than the firm which pays for the expenses of operating the ship. That’s one of the things that gets in the way of efficiency measures that require capital expenditures. The ship’s owner has to spend that money, but typically can’t get that money back from the operators who gain the benefits from it. This is the same problem with efficiency retrofits in commercial real estate, by the way, where tenants pay for utilities but landlords pay for insulation and heat pumps.

So there are business model headwinds for wind energy on ships. But those aren’t the only challenges.

Cargo ships don’t sail majestically across the briny deeps and then lower their cargo into rowboats. They berth at complex, highly automated, highly standardized ports, with most traffic flowing through the biggest 800 ports globally. They exist within a technical ecosystem that includes a lot of technology in ports to rapidly pluck cargo out of them and put it back into them. Smaller ships sometimes have winches of their own for loading and offloading at tiny ports, but this is the exception rather than the rule.

And specific bulk cargos have specific load and offload technologies, often at separate docks. Grain can’t be taken out of ships with coal loading equipment. Ammonia can’t be pumped out by equipment that deals with gasoline. Containers aren’t lifted out with the same cranes that haul out palleted cargo typically. Ships usually moor under a complex, gigantic mechanical spider’s worth of arms and gantries.

How exactly do masts and sails fit into that world? Well, they don’t. That’s a big problem for wind-powered cargo ships. Most wind energy solutions require very big things sticking up from the ship along its length. How exactly do you berth a ship like that so containers can be plucked from it?

[…]

The next problem for wind energy and cargo ships is keels. Sailing ships need them. A sailing ship moves forward because wind is trying to push it sideways and forward, and the keel prevents it from going sideways. That enables sailing ships to go upwind, or at least not be pushed downwind. And keels are longer the bigger the sailing ship. Wind surfers get by with little dagger boards. Kite surfers get by with little fins and some creative edging. Sailing ships need really deep keels. And cargo ships have really shallow keels by comparison.

Cargo ships are designed to be pushed from the back and to have the keel and the lee side of the ship push against the water sufficiently to overcome most wind loading from upwind. They burn fuel to go upwind. They point a bit more into the wind as necessary to achieve a straight course.

Put a big set of sails on a cargo ship and a lot more force is pushing the cargo ship sideways and downwind. This has to be adjusted for, mostly with a deeper keel.

And loaded cargo ships are already problematic for a lot of ports without deep keels because they have deep drafts, the distance between waterline and lowest point of the keel. Make the keel a lot bigger, and the draft by necessity gets deeper. Retractable keels exist for sail boats, but that’s not really an option for a cargo ship.

[…]

Next up, masts for sails wouldn’t just sit on the deck, they’d pierce the deck and be mounted on the hull. And the hull needs to be structurally sound enough for this. The masts would not be small, and on normal ships, they’d be along the center line, so would take up cargo space in addition to the problem of getting in the way of loading and unloading. Retrofitting sails that actually do anything to most existing bulk cargo ships would take a lot of extra metal below decks, and a really good engineering assessment to ensure that they could even survive the strain.

Finally, at least for this piece, there’s the problem of crews. They cost money. Ships are optimized and automated to reduce the crews as much as is reasonable given various port and sailing duties. A typical bulk coal or iron ore carrier of 150,000 to 175,000 tons would have 20 to 30 crew members. Smaller ships might have eight to ten.

Sailing ships that used to carry 200 tons of cargo had 20 to 30 crew members. We are moving 750 times as much cargo a lot faster with the same number of personnel. Cargo shipping is cheap unless you add a lot of crew. And most sailing technologies are going to require at least a few more people to manage them.

I’ve assessed several sailing technologies and setups for cargo ships. Magnus effect rotors are very interesting, as the same spin that makes a baseball curve in mid-air can be used to generate forward movement in a ship with vertical cylinders, but they really get in the way of pretty much everything noted above. Fabric sails on masts are just manual effort nightmares which pleasure and competitive sailors curse as much as they delight in when they are trimmed and working beautifully. Modern rigid wing sails that grew out of battened, almost rigid windsurfer sails, built in the same manner as wind turbine blades, and used on the massive, absurdly complex, foiling America’s Cup sailboats that crash spectacularly these days, just get in the way of everything too.

Only the bow-mounted parafoil passed my sniff test. Autolaunching and furling? Check (most of the time at least). Single attachment point? Check. Out of the way of cargo loading and unloading? Check. Relatively inexpensive? Check. Most power aligned with pulling the hull in the direction it wants to go through the water? Check. Even then, they’ve been having trouble finding buyers due to the business model challenge.

But this week, the Pyxis Ocean launched in China. The big shipping firm Cargill paid to have the Mitsubishi-owned ship retrofitted by Yara Marine with a couple of first-of-a-kind 123ft (37.5m) tall, rigid, complex sails designed by Bar Technologies, which is a spinoff company of an America’s Cup team. Did I mention the complexity of the business model challenge?

Musk never changes

Wednesday, September 13th, 2023

I started reading (and enjoying) Walter Isaacson’s Elon Musk biography yesterday, so I was surprised to see that Scott Alexander already had a book review of Elon Musk up — but its subtitle clarified:

Not the new one, sorry

This isn’t the new Musk biography everyone’s talking about. This is the 2015 Musk biography by Ashlee Vance. I started reading it in July, before I knew there was a new one. It’s fine: Musk never changes. He’s always been exactly the same person he is now.

[…]

Musk has always been exactly the same person he is now, and exactly what he looks like. He is without deception, without subtlety, without unexpected depths.

The main answer to the paradox of “how does he succeed while making so many bad decisions?” is that he’s the most focused person in the world. When he decides to do something, he comes up with an absurdly optimistic timeline for how quickly it can happen if everything goes as well as the laws of physics allow. He — I think the book provides ample evidence for this — genuinely believes this timeline, or at least half-believingly wills for it to be true. Then, when things go less quickly than that, it’s like red-hot knives stabbing his brain. He gets obsessed, screams at everyone involved, puts in twenty hour days for months on end trying to try to get the project “back on track”. He comes up with absurd shortcuts nobody else would ever consider, trying to win back a few days or weeks. If a specific person stands in his way, he fires that person (if they are an employee), unleashes nonstop verbal abuse on them (if they will listen) or sues them (if they’re anyone else). The end result never quite reaches the original goal, but still happens faster than anyone except Elon thought possible. A Tesla employee described his style as demanding a car go from LA to NYC on a single charge, which is impossible, but he puts in such a strong effort that the car makes it to New Mexico.

This is the Musk Strategy For Business Success; the rest is just commentary.

If you want to have a maximum effect on the design of a new engineering system, learn to draw

Wednesday, September 13th, 2023

Akin’s Laws of Spacecraft Design may seem niche, Byrne Hobart notes, but they are really general-purpose rules for managing teams:

Or at least teams that are working on problems where some parts can be quantified, some parts are unknown, and mistakes are costly; rockets are obviously an extreme case of this, but that just means there are certain things their designers learn faster and more painfully. Some of them, when generalized, can be quite fun. For example: “If you want to have a maximum effect on the design of a new engineering system, learn to draw. Engineers always wind up designing the vehicle to look like the initial artist’s concept.” This is a more concrete version of what someone might call “vision,” and since it’s more specific, it’s also easier to see why this is hard to pull off.

David Akin originally wrote his laws up to hand out to his senior design class at MIT:

1. Engineering is done with numbers. Analysis without numbers is only an opinion.

2. To design a spacecraft right takes an infinite amount of effort. This is why it’s a good idea to design them to operate when some things are wrong .

3. Design is an iterative process. The necessary number of iterations is one more than the number you have currently done. This is true at any point in time.

4. Your best design efforts will inevitably wind up being useless in the final design. Learn to live with the disappointment.

5. (Miller’s Law) Three points determine a curve.

6. (Mar’s Law) Everything is linear if plotted log-log with a fat magic marker.

7. At the start of any design effort, the person who most wants to be team leader is least likely to be capable of it.

8. In nature, the optimum is almost always in the middle somewhere. Distrust assertions that the optimum is at an extreme point.

9. Not having all the information you need is never a satisfactory excuse for not starting the analysis.

10. When in doubt, estimate. In an emergency, guess. But be sure to go back and clean up the mess when the real numbers come along.

11. Sometimes, the fastest way to get to the end is to throw everything out and start over.

12. There is never a single right solution. There are always multiple wrong ones, though.

13. Design is based on requirements. There’s no justification for designing something one bit “better” than the requirements dictate.

14. (Edison’s Law) “Better” is the enemy of “good”.

15. (Shea’s Law) The ability to improve a design occurs primarily at the interfaces. This is also the prime location for screwing it up.

16. The previous people who did a similar analysis did not have a direct pipeline to the wisdom of the ages. There is therefore no reason to believe their analysis over yours. There is especially no reason to present their analysis as yours.

17. The fact that an analysis appears in print has no relationship to the likelihood of its being correct.

18. Past experience is excellent for providing a reality check. Too much reality can doom an otherwise worthwhile design, though.

19. The odds are greatly against you being immensely smarter than everyone else in the field. If your analysis says your terminal velocity is twice the speed of light, you may have invented warp drive, but the chances are a lot better that you’ve screwed up.

20. A bad design with a good presentation is doomed eventually. A good design with a bad presentation is doomed immediately.

21. (Larrabee’s Law) Half of everything you hear in a classroom is crap. Education is figuring out which half is which.

22. When in doubt, document. (Documentation requirements will reach a maximum shortly after the termination of a program.)

23. The schedule you develop will seem like a complete work of fiction up until the time your customer fires you for not meeting it.

24. It’s called a “Work Breakdown Structure” because the Work remaining will grow until you have a Breakdown, unless you enforce some Structure on it.

25. (Bowden’s Law) Following a testing failure, it’s always possible to refine the analysis to show that you really had negative margins all along.

26. (Montemerlo’s Law) Don’t do nuthin’ dumb.

27. (Varsi’s Law) Schedules only move in one direction.

28. (Ranger’s Law) There ain’t no such thing as a free launch.

29. (von Tiesenhausen’s Law of Program Management) To get an accurate estimate of final program requirements, multiply the initial time estimates by pi, and slide the decimal point on the cost estimates one place to the right.

30. (von Tiesenhausen’s Law of Engineering Design) If you want to have a maximum effect on the design of a new engineering system, learn to draw. Engineers always wind up designing the vehicle to look like the initial artist’s concept.

31. (Mo’s Law of Evolutionary Development) You can’t get to the moon by climbing successively taller trees.

32. (Atkin’s Law of Demonstrations) When the hardware is working perfectly, the really important visitors don’t show up.

33. (Patton’s Law of Program Planning) A good plan violently executed now is better than a perfect plan next week.

34. (Roosevelt’s Law of Task Planning) Do what you can, where you are, with what you have.

35. (de Saint-Exupery’s Law of Design) A designer knows that they have achieved perfection not when there is nothing left to add, but when there is nothing left to take away.

36. Any run-of-the-mill engineer can design something which is elegant. A good engineer designs systems to be efficient. A great engineer designs them to be effective.

37. (Henshaw’s Law) One key to success in a mission is establishing clear lines of blame.

38. Capabilities drive requirements, regardless of what the systems engineering textbooks say.

39. Any exploration program which “just happens” to include a new launch vehicle is, de facto, a launch vehicle program.

39. (alternate formulation) The three keys to keeping a new human space program affordable and on schedule:
1) No new launch vehicles.
2) No new launch vehicles.
3) Whatever you do, don’t develop any new launch vehicles.

40. (McBryan’s Law) You can’t make it better until you make it work.

41. There’s never enough time to do it right, but somehow, there’s always enough time to do it over.

42. If there’s not a flight program, there’s no money.
If there is a flight program, there’s no time.

43. You really understand something the third time you see it (or the first time you teach it.)

44. (Lachance’s Law) “Plenty of time” becomes “not enough time” in a very short time.

45. Space is a completely unforgiving environment. If you screw up the engineering, somebody dies (and there’s no partial credit because most of the analysis was right…)

When contemporaries describe Gagosian, they tend to summon carnivore analogies

Thursday, August 17th, 2023

Patrick Radden Keefe channels Tom Wolfe as he explains how Larry Gagosian reshaped the art world:

It was the Friday afternoon of Memorial Day weekend on Further Lane, the best street in Amagansett, the best town in the Hamptons, and the art dealer Larry Gagosian was bumming around his eleven-thousand-square-foot modernist beach mansion, looking pretty relaxed for a man who, the next day, would host a party for a hundred and forty people. A pair of French bulldogs, Baby and Humphrey, waddled about, and Gagosian’s butler, Eddie, a slim man with a ponytail and an air of informal professionalism, handed him a sparkling water. Gagosian sat down on a leather sofa in the living room, his back to the ocean view, and faced a life-size Charles Ray sculpture of a male nude, in reflective steel, and a Damien Hirst grand piano (bright pink with blue butterflies) that he’d picked up at a benefit auction some years back, for four hundred and fifty thousand dollars. On a coffee table before him was a ceramic Yoshitomo Nara ashtray the size of a Frisbee, decorated with a picture of a little girl smoking and the words “too young to die.”

Gagosian is not a household name for most Americans, but among the famous and the wealthy — and particularly among the very wealthy — he is a figure of colossal repute. He is dubious of art dealers who refer to themselves as “gallerists,” which he regards as a pretentious euphemism that obscures the mercantile essence of the occupation. He has always favored a certain macho bluntness, and calls himself a dealer without apology. With nineteen galleries that bear his name, from New York to London to Athens to Hong Kong, generating more than a billion dollars in annual revenue, Gagosian may well be the biggest art dealer in the history of the world. He represents more than a hundred artists, living and dead, including many of the most celebrated and lucrative: Jenny Saville, Anselm Kiefer, Cy Twombly, Donald Judd. The business — which he owns without a partner or a shareholder or a spouse or children or anyone, really, to answer to — controls more than two hundred thousand square feet of prime real estate. All told, Gagosian has more exhibition space than most museums, and he shuttles among his outposts on his sixty-million-dollar Bombardier Global 7500 private jet. He’s been known to observe, with the satisfaction of Alexander the Great, “The sun never sets on my gallery.”

[…]

When contemporaries describe Gagosian, they tend to summon carnivore analogies: a tiger, a shark, a snake. His own publicist once described him as “a real killer.”

The languid calm that he exuded on the eve of the Amagansett party was that of a predator between meals. At seventy-eight, he remains tall and broad-shouldered, with a full head of white hair that he keeps trimmed close to the scalp, like a beaver pelt. Gagosian has blue eyes, which often flash with mirth — he has a quick, salty sense of humor — but they can just as suddenly go blank if he feels threatened or wants to be inscrutable. In conversation, these abrupt transitions from easy bonhomie to enigmatic hostility and back again can be jarring.

(Hat tip to Byrne Hobart.)

The NCAA has a “hot girl” problem

Friday, August 4th, 2023

The NCAA has a “hot girl” problem:

The [Cavinder] Twins’ attorney, Darren Heitner, calls their stratospheric rise a “blueprint” for other college athletes trying to cash in on the new, multibillion-dollar market. That market is the result of a 2021 Supreme Court ruling that led the National Collegiate Athletic Association, the 117-year-old organization that governs college sports, with roughly 1,100 member schools nationwide, to change its name, image, and likeness (or NIL) policy—enabling student athletes to cash in on their athletic prowess.

Before then, student athletes could generate enormous amounts of money for their schools—in 2019, the year before the pandemic, top-tier schools earned nearly $16 billion in media rights, tickets sales, licensing, and so forth from their athletes—while making nothing for themselves.

Thing is, the athletes now profiting are not necessarily the ones with the most athletic prowess. Or at least that’s the case when it comes to female athletes.

While the Twins are accomplished basketball players—until recently, they played for Division I University of Miami—they’re nowhere near the top of the women’s basketball totem pole. The top players in college women’s basketball—like Keishana Washington at Drexel University or Caitlin Clark at University of Iowa—score close to 30 points per game. In her final year at Miami, Haley Cavinder scored just over 12 points per game; Hanna, just under 4 points. They were good, but not WNBA good.

“If you look at the NIL girls, the first ones who were getting deals were the blonde girls,” Louis Moore, a sports historian at Grand Valley State University, told The Free Press. The Cavinder Twins, Moore said, have benefited handsomely from “their very blonde, girl-next-door looks,” posting videos of themselves in bikinis and tight-fitting dresses. Lots of their videos hint at the possibility of one twin having a boyfriend. Others wink at the male fantasy of group sex with identical sisters, featuring captions like “when he asks for blonde twins for Christmas” and “I want a girl with a twin sister.”

The Twins get their appeal. And even though they think it’s unfair that the mostly black top scorers in women’s college basketball make less than they do—including Louisiana State University’s Angel Reese and Flau’jae Johnson—that’s not stopping them.

[…]

Louisiana State University gymnast Olivia Dunne neatly illustrates this dynamic. Like the Twins, she’s good at her sport, but she’s not heading to the Olympics next year in Paris. And, like the Twins, she’s a button-nose blonde. No surprise, her Instagram is a hit. So is her TikTok, especially this recent video.

Dunne has racked up NIL deals totaling $3.4 million—making her the top-earning female athlete in the NCAA and No. 2 overall. As of this week, she lags behind No. 1 Bronny James, the oldest son of LeBron James who will be playing basketball for USC and is worth nearly $7 million, and she leads No. 3 Arch Manning, a quarterback phenom worth nearly $3 million who is a nephew of former NFL quarterbacks Peyton and Eli Manning. (Nepotism is clearly another driver of NIL success.)

The ability to fly lower means it won’t have to spend time climbing

Sunday, July 30th, 2023

Eviation, a Washington State-based startup aiming to be one of the first companies to produce electric planes for commercial use, says its electric planes due in 2027 will make air travel less costly and cleaner:

The Alice is a nine-seater aircraft with a length of around 57 feet and a wingspan of 62 feet. These dimensions put it in the ballpark of a Cessna Citation Excel or a Piaggio P.180 Avanti. “I like to say that we found the sweet spot for electric aviation with this aircraft: we have a nine-passenger plane,” Aviation CEO Gregory Davis told InsideEVs. “You can fly with a single pilot in North America, so it means that it is more cost-effective to operate than a ten-passenger plane where you need two pilots.”

Keeping this plane flying in the air requires significant research and development — and that starts with the battery. Namely, the Alice stores a 900kWh battery pack in its underbelly. “In terms of the size of the battery, it is an 8,000-pound battery,” says Davis. “That 8,000-pound battery is fairly similar to what a full fuel load on a plane that size might weigh,” Davis told InsideEVs. “It actually works out well inside the existing rules for aircraft sizing.”

The 900kWh battery pack gives the Alice a range of around 250 nautical miles (with an additional 30 minutes for reserves), meaning it’s geared strictly for short-distance travels.

[…]

We need to have a good battery life, but it doesn’t need to be a 20-year battery. What we’re actually doing is designing our battery to be a 3,000-cycle or 3,000-hour battery, and they’ll get replaced during routine maintenance. We make sure that you’re also operating in the top 10% of battery utilization.”

Interestingly, aircraft turbine engines need to be rebuilt around every 3,000 cycles, and after several rebuilds, they’ll need to be replaced entirely.

[…]

“For the aircraft, electricity that is derived from the grid is between 30 and 70% cheaper than aviation fuel, and that’s in today’s environment,” Davis told InsideEVs. Besides the fuel cost savings, electric motors providing thrust will be less maintenance intensive than a turbine engine. “The electric motors are so much less costly to maintain than a traditional turbine engine,” Davis said.

But ditching the turbines comes with an unexpected benefit. Namely, the plane won’t have to reach 30,000+ feet to achieve maximum efficiency.

[…]

The ability to fly lower also means that Alice won’t have to spend more time climbing, which is a highly energy-intensive task. Along with cutting down carbon emissions, the Alice will also reduce noise pollution, an adversary of residential communities located near airports. “One of the advantages of an electric aircraft is that it’s very quiet. It’s incredibly quiet, especially compared to a turbine aircraft,” Davis said. With the quieter flight, these planes might be allowed to fly into airports with curfews during off-hours, like John Wayne Airport (SNA) in Irvine, California.

“The idea is that with an {electric} aircraft, you can access the airport infrastructure at 2:00 in the morning to do an overnight package delivery,” Davis told InsideEVs. “That rapid point-to-point package delivery for the freight provider is {highly beneficial}. Being able to knock twelve hours off your delivery time is very valuable to freight companies.”

Would a cup of “Pee-kwod” appeal to anyone?

Friday, July 21st, 2023

When I was a kid, Starbuck was the name of a cocky fighter pilot in the original Battlestar Galactica. It was a fanciful, sci-if name, like Skywalker. Somewhere along the way I picked up that it was a real name, but it was still surprising to see a coffee-shop chain of the same name (but with a non-apostrophe s):

In 1971, our founders got together with artist Terry Heckler to define their new brand. They wanted the company’s name to suggest a sense of adventure, a connection to the Northwest and a link to the seafaring tradition of the early coffee traders. Co-founder Gordon Bowker, a writer, initially proposed calling the company “Pequod,” after the ship in Herman Melville‘s classic novel “Moby-Dick.” But Terry objected – would a cup of “Pee-kwod” appeal to anyone?

The brainstorming continued. While researching names of mining camps on Mt. Rainier, one of the best known landmarks near Seattle, Terry came across “Starbo,” which eventually led the team back to where they’d started. In “Moby-Dick,” the name of the first mate on the Pequod was, you guessed it, Starbuck. A brand was born.

I somehow forgot the name of the first mate on the Pequod. It turns out Starbuck is the name of a prominent real-life whaling family.

United Airlines will fly an air taxi service between the downtown Vertiport Chicago and O’Hare

Sunday, April 23rd, 2023

In 2025, United Airlines will fly an air taxi service between the downtown Vertiport Chicago and O’Hare International Airport, using electric vertical takeoff and landing aircraft it is purchasing from Archer Aviation:

The Archer Midnight eVTOL aircraft will complete the route in about 10 minutes; according to local resident and Ars Managing Editor Eric Bangeman, that journey by car can take over an hour due to road construction.

[…]

United placed an order for 200 eVTOL aircraft from Archer back in 2021 at a cost of $1 billion.

[…]

The Archer Midnight has a range of 100 miles (160 km) and a top speed of 150 mph (241 km/h).

[…]

Asked about the cost, an Archer spokesperson told the Chicago Sun-Times that the company hopes to make the service competitive with Uber Black, so it will be roughly $100 for the trip.