MasterFeeds: 2019

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Dec 3, 2019

What Is Happening in #Caracas, #Venezuela’s Protected Capital?

"people on the ground have turned the page. And this is not necessarily a good thing, nor a bad one, it just is. This is the general mood everywhere, folks just got tired of waiting..."


Petare is the largest slum in Latin America, it harbors twice the population of Iceland. Photo: Raul Stolk.
Caracas Chronicles' Raul Stolk, asks:

Are things better in Caracas? New business has sprouted, traffic jams are back, people are getting ready for Christmas, and no one talks about politics. Here’s a stab at understanding what’s going on.
"what can be seen in the streets of Caracas these days: a strong presence of the private sector and the complete absence of the state. It’s complicated and hard to explain. So complicated that media and analysts dedicated to covering and explaining Venezuela haven’t been able to do so (including us, of course)."


"Returning to Caracas one year later feels like going back to a bombing site and finding people rearranging the rubble to make their lives around it."

Read the whole article here on Caracas Chronicles: : What Is Happening in Venezuela’s Protected Capital? | Raul Stolk at Caracas Chronicles:


Nov 26, 2019

After #WeWork, #Oyo: #SoftBank’s #Startups' Bookkeeping is a Fairy Tale- Appropriately for Unicorns...


"If you screwed up that valuation so badly, what about all of the other companies in your portfolio?"



"That kind of fundraising apparatus is essentially unicorn porn."

Oyo is the other softbank company that is a scam.  

Its a cheap hotel operator in India that has gotten plenty of landlords into debt, in return for pie in the sky dreams from the company. They bought the hooters hotel in Las Vegas!! SEE https://www.nytimes.com/2019/11/12/technology/softbank-startups.html    In the latest round of financing, look at this fast one pulled by Masa Son
Even as SoftBank ran into trouble with WeWork, it helped push up the valuation of Oyo with an unusual funding round. In October, the Japanese company and Agarwal together chipped in, raising the valuation to $10 billion. SoftBank touted the startup as a bright spot when it took the writedown for WeWork, booking a valuation gain of 590 billion yen on 25 investments, of which Oyo was the only one named.
Yet it turned out that Agarwal, now 26, had borrowed $2 billion to finance his share of the purchase from financial institutions, including Japan's Mizuho Financial Group Inc., people familiar with the matter have said. Son himself personally guaranteed the loans to Agarwal, according to another person familiar with the matter. 
In addition, two earlier investors in Oyo were Didi and Grab, the ride-hailing companies backed by SoftBankThat raises the question of whether money used to boost their valuations was then reused to hike the value of another SoftBank investment.-
AKA: A PONZI!!
After WeWork, SoftBank's Startup Bookkeeping Draws Scrutiny

by Peter Elstrom and Pavel Alpeyev

In some cases, SoftBank's involvement in multiple funding rounds helped drive up startup valuations that resulted in paper profits for Son's company.

Nov 18, 2019

After #Woodford fiasco, #ShortSelling Sharks Swarm Around Hargreaves Lansdown & St James’s Place $HL.L $SJP.L

Hargreaves Landsdown, UK's biggest fund supermarket, who put 300,000 of its 1.1 million customers into Woodford's funds, is now facing potential class action lawsuit from its clients, "many of whom are irate that the company continued to promote Mr Woodford's fund until it was frozen."

SJP had a £3.5bn segregated investment mandate with Mr Woodford, which it withdrew immediately after Woodford's Equity Income's suspension.

See the whole article from the FT here: https://www.ft.com/content/460fd484-5b08-4831-87d0-f3ef25f59c2c 

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Nov 14, 2019

Lord & Taylor: #Neumann & #WeWork’s White Elephant "They overpaid by $150 to $200 million"



WeWork's white elephant: Insiders rip Lord & Taylor building buy

Profligate purchase by ex-CEO is stain on the struggling company

TRD New York  /

November 01, 2019 08:15 AM

Former WeWork CEO Adam Neumann and Rhône's Steve Langman with the Lord and Taylor Building at 424-434 Fifth Avenue (Credit: Getty Images)

As WeWork attempts to scrub its image clean of Adam Neumann, some of the ousted CEO's transactions serve as a bitter reminder of the company's former culture of excess.

One is WeWork's $850 million purchase of the Lord & Taylor building. Six current and former WeWork employees familiar with the acquisition told The Real Deal that WeWork overpaid, perhaps by as much as $200 million. Moreover, some said, the deal was rife with potential conflicts of interest.

A particular concern was the role of Steve Langman, a WeWork board member who held interests in the buyer, the seller and the tenant in the Midtown building before the sale closed.

"I've never seen a more conflicted situation," said one person close to the deal. A source close to Langman countered that the board member had recused himself from votes that would have entailed a conflict of interest.

The future of the iconic property, at 424 Fifth Avenue, is now being considered as WeWork looks to cut costs.

The company abandoned its planned public offering in the fall and its valuation has plummeted by $39 billion. SoftBank, its largest investor, has since agreed to extend a roughly $9 billion lifeline to save the company from potential bankruptcy and has installed a new chairman, former Sprint CEO Marcelo Claure.

New co-CEOs Artie Minson and Sebastian Gunningham have committed to focusing on WeWork's core office-space business and offloading side ventures launched by Neumann, who left earlier this month.

Most of WeWork's heavily scrutinized transactions have been unwound, including ones involving Neumann — notably his purchase of properties that he then leased back to WeWork. (Those have been sold to WeWork's real estate investment group.) A $5.9 million payment he received for giving the company rights to the trademark "We" was returned after withering criticism. And a $60 million Gulfstream jet the company purchased has been put on the market.

Like the Lord & Taylor building's lease, these transactions were approved by WeWork's board members, most who remain in place.

Among them is Langman, whose $5.5 billion private equity firm, Rhône Group, is a major investor in WeWork's real estate investment vehicle. He was an early investor in WeWork and is known to be close to Neumann, whom he met through links to the Kabbalah Center, a spiritual organization that promotes Jewish mysticism.

Langman was chosen along with Neumann's wife, Rebekah Neumann, and board member Bruce Dunlevie to nominate a replacement for the CEO in the event that he was incapacitated or died.

"Langman became involved at an early point, before Adam had the world circling around him," said one current WeWork employee. A former executive said, "Langman has some weird control over Adam."

424 Fifth Avenue (Credit: Getty Images)

According to four current and former employees of WeWork, Langman's tight relationship with Neumann clouded the Lord & Taylor building transaction. Some questioned how he was allowed to have interests in so many sides of the deal.

After Lord & Taylor abandoned plans to stay in the 10-story, 105-year-old building, WeWork was forced to take over the entire property to satisfy lenders for the purchase. It then had to negotiate a lease with its real estate investment vehicle, WeWork Property Advisors, which was buying the property.

Langman sat on both WeWork's board and the investment advisory committee of WeWork Property Advisors. In addition, after the deal went into contract, he and another WeWork Property Advisors executive, Eric Gross, joined the board of Hudson's Bay Company, the seller of the building.

"It was an above-market purchase price, and we had to sign an above-market lease to save Langman's ass and save the deal," said one former WeWork executive. A current employee familiar with the matter said Neumann drummed up support for the acquisition. "The rationale internally was, this was a crown jewel."

A person close to Langman said he has recused himself from all WeWork board votes relating to the company's real estate investment vehicle, including the Lord & Taylor building lease.

A spokesperson for Canada-based Hudson's Bay said in a statement that Langman and Gross recused themselves from all board decisions regarding the Lord & Taylor building before the sale was complete "to avoid any conflicts of interest."

In a statement, a WeWork spokesperson said "its decision to lease space in 424 Fifth Avenue was reviewed and approved in accordance with the procedures of the board."

A spokesperson for Neumann declined to comment.

The "Adam and Steven Show"

In March 2017, WeWork went beyond its primary business — leasing office space — and began looking at buying properties. It launched WeWork Property Advisors, a joint venture with Langman's Rhône Group.

The venture is now part of an investment vehicle called ARK, which has purchased properties across the U.S., including a 4.7-acre development site in Austin, Texas. Although it acts as a siloed entity to WeWork, they share advisers. One current employee described it as the "Adam and Steven show," before Neumann left the company.

Its first target was the Lord & Taylor building, which since its completion in 1914 had been the flagship store for the storied company. But with ecommerce undermining traditional retailers, its parent company, HBC, found itself desperate for cash.

"It was an above-market purchase price, and we had to sign an above-market lease to save Langman's ass and save the deal."

A 2016 appraisal commissioned by HBC valued the landmark building at $655 million. The following year the company had advanced discussions with prospective buyers, including Brookfield, which dangled a $700 million offer, according to the Wall Street Journal. But a person close to HBC said no formal offers were made until WeWork Property Advisors put in a bid.

An agreement was reached in October 2017. The $850 million deal called for WeWork Property Advisors to acquire the building and its managing partner, Gross, to take a seat on HBC's board. WeWork also committed to taking space in some HBC locations.

Separately, Langman's Rhône Group would take a $500 million stake in HBC — almost a third of the company — earning him a board seat. In December, WeWork Property Advisors put down a $75 million deposit on the building.

A HBC spokesperson said the building acquisition and Rhône's investment in HBC were "negotiated at arm's length" with HBC management. The deal was approved unanimously by HBC's board before Langman and Gross became members, the spokesperson said.

"They overpaid by $150 million to $200 million," said one person close to the matter. A current WeWork executive said, "We clearly overpaid, and it was no secret."

The initial plan involved Lord & Taylor staying in the building through 2018. After that, the retailer would occupy a 150,000-square-foot retail space, and WeWork would move its headquarters there and take office space for its clients, HBC said in a press release at the time.

But plans to fill the retail portion of the building with Lord & Taylor fell through. As a result, prospective lenders began demanding that WeWork lease the entire building to secure debt, according to three people with knowledge of the situation. The lenders were also wary of the high purchase price of the property.

In addition, more than $200 million was needed for a gut renovation of the building. In November 2018 Manhattan Community Board 5 recommended rejection of the new designs, which were led by Bjarke Ingels Group and included a two-story glass cube on the roof. The Landmarks Preservation Committee ultimately approved the project.

Pressure to close the deal increased as WeWork's investment arm missed two deadlines and paid $50 million to keep the seller from walking.

Meanwhile, tensions grew between WeWork's real estate division and WeWork Property Advisors over the cost of the rent. They ultimately agreed to a $105-per-square-foot lease — a figure boosted by the higher-priced retail space. Office asking rents for that neighborhood were $75 a square foot in first quarter of 2019, according to CBRE.

As WeWork's board signed off on the lease, JPMorgan and Starwood committed to provide a $900 million loan to WeWork Property Advisors for the purchase and renovation of the building.

A landmark's murky future

WeWork Property Advisors closed on the sale of the Lord & Taylor building in February, more than a year after agreeing to buy it. The building is now a construction site, with WeWork overseeing extensive renovations.

But the company's options for the building appear to be dwindling. Efforts to attract other tenants have failed. In July, Amazon briefly discussed taking over the building. And with massive job cuts looming at WeWork, the prospect of its employees filling the Lord & Taylor building is unlikely.

Last week, Crain's reported that the company hired a leasing broker and is considering marketing the building to enterprise clients. Rumors that WeWork is mulling a sale are circulating in New York's real estate industry, but unloading it could involve a significant markdown of the building, some prominent city brokers said.

In a statement, WeWork said it "remains committed to 424 Fifth Avenue," and that it is "excited" to reopen the building next year once it completes renovations.

Regardless of its future, the building has served as a stepping stone for Langman and his firm Rhône Group. With its Hudson's Bay stake, Rhône joined HBC's chairman in taking the company private this month, at a valuation of about $1.3 billion.



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Nov 13, 2019

“#Trump is replacing formal relations among nations in several cases with family-to-family relationship, or crony-to-crony relationships,” a la #Erdogan

"#Trump is replacing formal relations among nations in several cases with family-to-family relationship, or crony-to-crony relationships," a la #Erdogan who "runs a crony capitalist regime of his own," Mr. Edelman said. "But it ought to be a matter of concern to all Americans."

Behind Trump's Dealings With Turkey: Sons-in-Law Married to Power
https://www.nytimes.com/2019/11/12/us/politics/trump-erdogan-family-turkey.html?smid=nytcore-ios-share

Oct 21, 2019

#Trump Reelection #Campaign #Ads Is "A Supercar Racing A Little VW Bug." Guess Who's The Volkswagen...


PhotoCredit: Brian Stauffer

Great article from The NY Times on how Democrats don't seem to have gotten the memo on online advertising. 

As a prime example, upon an onslaught of targeted online ads ("Learn the truth. Watch Now!"about former VP and UkraineBiden campaign proceeded to slash its online advertising budget in favor of more television ads.!!!  

Talk about clueless!!  

Trump Campaign Floods Web With Ads, Raking In Cash as Democrats Struggle


"That campaigns are now being fought largely online is hardly a revelation, yet only one political party seems to have gotten the message."
Democratic establishment is "too focused on winning over imagined moderates"


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Oct 11, 2019

With #Putin Propping Up #Maduro, Evading #Oil #Sanctions, and Moving Troops Into #Venezuela, #Russia Is Gearing Up for Conflict With #US in #Caribbean

Russia Is Gearing Up for a Conflict With the United States in the Caribbean

With Moscow propping up Maduro, evading oil sanctions, and moving its troops around the coast, Washington needs to rethink its own strategies.

Russian President Vladimir Putin and Venezuelan President Nicolás Maduro shake hands at the Kremlin in Moscow on July 2, 2013.
Russian President Vladimir Putin and Venezuelan President Nicolás Maduro shake hands at the Kremlin in Moscow on July 2, 2013.  Maxim Shemetov/AFP/Getty Images

As PDVSA's list of clients has shrunk, Rosneft has quickly surpassed all other companies to become the top trader of Venezuelan oil. Whereas the company handled 40 percent of PDVSA's oil exports in July, by August, it was handling 66 percent. Recently, PDVSA even established an office in Moscow to facilitate payments to its Russian client, which has helped reduce its outstanding debt to Rosneft to $1.1 billion. At this pace, outstanding loans to Rosneft could be repaid in full sometime around the end of this year or in early 2020.

Once that happens, Putin's stated excuse for continued engagement with Venezuela will be moot, but this won't bring about the grand geopolitical shift in Venezuela that it otherwise could. That's because, for now, supporting Maduro is a low-cost strategy that allows Putin to burnish his image as a defender of embattled regimes everywhere. Russia's presence in Venezuela—its most significant in the Western Hemisphere since the Cuban missile crisis—will continue long after the excuse of collecting on Venezuela's debts has run its course.

Indeed, recent moves indicate that Putin is eyeing even deeper intervention in Venezuela, both military and financial.

Oct 8, 2019

#SoftBank's plans for second mega #VisionFund hit by #WeWork, #Uber debacles


SoftBank's cash flow problems compound plans for second mega-fund hit by WeWork, Uber debacles

(Reuters) - SoftBank Group founder and CEO Masayoshi Son is struggling to raise money for a second massive technology investment fund in the wake of the failed public offering of office-rental company WeWork and sliding valuations of other major investments, according to two people familiar with the situation.
Son is still determined to go ahead with Vision Fund 2 even though some lieutenants have urged a delay... 
The worsening turmoil at WeWork will continue to be a strain on SoftBank and the first [Vision] fund. 
The price of WeWork bonds has sunk...without further investment from Son or his entities, it will be difficult to stabilize given the size of its future financial commitments.
That is just one of the calls on SoftBank's money. Some of the investors in the first Vision Fund receive interest payments of 7% annually on their stakes, an unusual structure that creates an ongoing need for cash. Some of that has come from sale of stakes...but SoftBank has also borrowed money to fund payouts to investors.

SoftBank also faces the risk that a deal to merge its money-losing U.S. telecom carrier Sprint Corp with T-Mobile US Inc could be blocked by an antitrust lawsuit from U.S. states. If that happens, it will leave SoftBank with an expensive liability, analysts say.

SoftBank's stock has fallen 13% over the past month and is now trading at its lowest level since January. SoftBank's operating cash flow also turned negative last quarter and it could struggle to raise tens of billions of dollars in cash, a Reuters analysis of its balance sheet shows.

SoftBank does not have significant cash on hand to finance the new fund. As of June 30, it had $27.41 billion of cash and cash equivalents on its balance sheet. However, this and other current assets was more than matched by near-term liabilities.
Read the whole article online here: https://premium.kitco.com/news/2019-10-04/SoftBank-s-plans-for-second-mega-fund-hit-by-WeWork-debacle.html

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Oct 7, 2019

#SocialMedia being used to manipulate public opinion in more than 70 countries says New report from Oxford Internet Institute

Use of social media to manipulate public opinion now a global problem, says new report — Oxford Internet Institute
"social networking technologies – algorithms, automation and big data – vastly changes the scale, scope, and precision of how [mis]information is transmitted in the digital age."
  • Organized social media manipulation has more than doubled since 2017
  •  70 countries using computational propaganda to manipulate public opinion.
  • In 45 democracies, politicians and political parties have used computational propaganda tools by amassing fake followers or spreading manipulated media to garner voter support.
  • In 26 authoritarian states, government entities have used computational propaganda as a tool of information control to suppress public opinion and press freedom, discredit criticism and oppositional voices, and drown out political dissent.
  • Foreign influence operations, primarily over Facebook and Twitter, have been attributed to cyber troop activities in seven countries: China, India, Iran, Pakistan, Russia, Saudi Arabia and Venezuela.
"The manipulation of public opinion over social media remains a critical threat to democracy, as computational propaganda becomes a pervasive part of everyday life. Government agencies and political parties around the world are using social media to spread disinformation and other forms of manipulated media. Although propaganda has always been a part of politics, the wide-ranging scope of these campaigns raises critical concerns for modern democracy."

Read the excerpt for the report, 'The Global Disinformation Order: 2019 Global Inventory of Organised Social Media Manipulation', here: https://www.oii.ox.ac.uk/news/releases/use-of-social-media-to-manipulate-public-opinion-now-a-global-problem-says-new-report/

#SoftBank & its #VisionFund accounted for +10.5% of known #VC worldwide deal volume so far in 2019.



SoftBank, its nearly $100 billion Vision Fund, and its related investing entities have dealt in over 10.5% of known Venture Capital dollar volume, worldwide, so far in 2019.


Oct 3, 2019

Western #Europeans will never forgive #Israel for the Holocaust, aka, “Guilt-Defensiveness” #AntiSemitism. Book review:

Bari Weiss's book, Antisemitism and the return of historytouches on the classical types of antisemitism with which we are all too familiar. Yet it is the new "Guilt-Defensiveness" AntiSemitism that is most dangerous in the west, especially given the (shady) alliances they have chosen to make. 

 Neo-Nazis, in a way, are easy. We know they wish us dead.

Anti-Semites with PhDs, the ones who defend their bigotry as enlightened thinking, are harder to fight.

On the new Guilt-Defensiveness Anti-Semitism:

The Israeli psychoanalyst Zvi Rex famously remarked, with biting sarcasm, that "The Germans will never forgive the Jews for Auschwitz."

Rex's formulation about German society punishing Jews because of the memory of the Shoah, which infuses pathological guilt into many Germans, needs to be updated.

In a modernized version of Rex, one might say that "Western Europeans will never forgive Israel for the Holocaust." 

In short, that Western European countries such as France, Sweden, Austrian, Italy and others that were complicit in the Shoah are intensely focused on imposing discipline and punishment on Israel because of their guilt associated with Holocaust. 

This is also terrifying: 

A 2017 German government study revealed that nearly 33 million Germans, out of a total population of 82 million, are infected with contemporary antisemitism–that is hatred of the Jewish state.

The report said, in a section titled "Agreement with Israel-related antisemitism," that 40% of Germans who were polled approved of the following statement: "Based on Israel's policies, I can understand people having something against the Jews."


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Oct 2, 2019

#NYC: #Manhattan Home Prices Drop Most Since 2011


NYC home sales down 8% from a year earlier
First decline in the past 10 quarters and the biggest since the third quarter of 2012.
"It's just more signs that the sellers are capitulating"
In the three months through September, 93.6% of all purchases were at or below the last asking price, the second-highest share since the end of 2011. 

prices are settling at a level anywhere between 10% and 20% below their 2015 highs. 

The homes that sold in the third quarter spent an average of 192 days on the market. 

29% of Manhattan's inventory is priced over $3 million -- yet in the quarter, only 9.7% of closings were in that range.


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#WeWork: At What Point Does #Malfeasance Become #Fraud? Neumann fired? My God, he got on the last helicopter out of Saigon…





Great interview with @ProfessorGalloway in the New Yorker on #WeWork's « triage » 

« This is a distressed asset in free fall that is inarguably worth less than zero. Because all we have here is an entity burning $700 million a quarter. »

« The market is going to have to decide how thin the lines are between vision, bullshit, and fraud. »

« Adam Neumann fired? He was liberated. This guy just played this perfectly. Could you imagine what his life would be like right now? If he was still CEO? Showing up every day to an office where he had sold $750 million and everybody else was trying to figure out how they were going to pay the rent on the new apartment they had moved into because they thought they had $7 million in We stock? »

« Adam Neumann came in, smoked his own supply, and walked out with three-quarters of a billion dollars about the time that people in hazmat suits showed up. …So he and his family will literally have to go into hiding. There will be threats against his life. There's going to be so much anger here.»

What about « JPMorgan and Goldman Sachs? These guys were about to collect $130 million in fees and then prop up some equity analysts to tell their private-wealth managers in the marketplace that this thing was $40 billion to $60 billion. And according to Goldman, it was worth $60 billion to $90 billion! What does that say about them? »

« What happens to the New York and Chicago commercial-real-estate markets where WeWork was the biggest and the second-biggest tenants? »
« The real toll is that there's somewhere between 5,000 and 15,000 WeWork employees who took a job and a big part of their compensation — the reason they took these jobs was because of equity value. And it's impossible not to count your money 30 days out from an IPO
« We're probably talking about several thousand people who were going to be millionaires. Now most of them are probably thinking that in the next 30 days there's a one-in-two chance I don't have health insurance. »
« Adam Neumann fired? My God, he got on the last helicopter out of Saigon. »
Read the whole article in the New Yorker Magazine: 

'At What Point Does Malfeasance Become Fraud?': NYU Biz-School Professor Scott Galloway on WeWork


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Sep 30, 2019

#Banks & #Mortgage Market have not adequately priced-in #ClimateChange

Financial Markets today have not adequately priced-in the likely near-term policy response to climate change”



A UN-supported entity called Principles for Responsible Investment, PRI — whose membership includes some 500 global asset managers — predicts a market “response by 2025 that will be forceful, abrupt and disorderly because of the delay”. In plain English, they expect a market shock.



A McKinsey consultant gave the UN a couple of examples of where “disorderly” repricing might occur. Coastal regions such as Florida, he warned, could deliver asset price shocks for lenders, insurers and homeowners. So, too, in places such as Spain, southern France, Greece and Italy which are projected to see eye-popping increases in drought. 

...



Using a synthetic portfolio of 100,000 residential mortgages in southern Florida — based on the exposure of a real bank — Jupiter, a climate advisory group, forecasts a tripling of losses from flood damage in the next couple of decades.

...

American households typically use 30-year mortgages to buy properties, [but] the price of insurance is reset annually. There is, in other words, an embedded maturity mismatch in risks in the Florida property markets that could spark mortgage defaults, hurting borrowers and lenders.





See the full article on the FT here:  Climate change could cause a new mortgage default crisis

Sep 27, 2019

#PropTech #Startup #Cadre Flipping #RealEstate Like A Pro Hits $100M in Investor Returns

Cadre was most recently valued at $800 Million. 

In the five years since launching in 2014, the startup now has roughly 20,000 investors who have stakes in more than $3 billion worth of real estate assets.

With the recent sale of two apartment complexes in the Chicago and Atlanta metro areas, respectively, Cadre says it's hit a new milestone—$100 million in returns to its investors, to date.

VC Backers includes Andreessen Horowitz, General Catalyst, Khosla Ventures and Founders Fund. The company is among a wave of "proptech" companies that have sought to disrupt the commercial real estate industry via tech-enabled platforms and products.

Read the article on Fortune here: https://fortune.com/2019/09/26/proptech-startup-cadre-investor-returns/

#Politics and #Advocacy Are Tainting #Science #LongReads

This is a great research report showing how Politics and Advocacy are tainting Science and Academia.  A sad story. 

"advocacy is not scholarship; the former is specifically concerned with advancing human rights, the latter with the production of knowledge. To insist that scholars of a particular discipline adhere to and even advance preordained social politics looks to me frighteningly like the situation Galileo found himself in."

Darkness's Descent on the American Anthropological Association

A Cautionary Tale

Author: Alice Dreger
Human Nature September 2011, Volume 22, Issue 3, pp 225–246

Open AccessArticle
SpringerLink

Abstract

"In September 2000, the self-styled "anthropological journalist" Patrick Tierney began to make public his work claiming that the Yanomamö people of South America had been actively—indeed brutally—harmed by the sociobiological anthropologist Napoleon Chagnon and the geneticist-physician James Neel. Following a florid summary of Tierney's claims by the anthropologists Terence Turner and Leslie Sponsel, the American Anthropological Association (AAA) saw fit to take Tierney's claims seriously by conducting a major investigation into the matter. This paper focuses on the AAA's problematic actions in this case but also provides previously unpublished information on Tierney's falsehoods. The work presented is based on a year of research by a historian of medicine and science. The author [Alice Dreger] intends the work to function as a cautionary tale to scholarly associations, which have the challenging duty of protecting scholarship and scholars from baseless and sensationalistic charges in the era of the Internet and twenty-four-hour news cycles."
"if the life's work of your colleague is on the line, can you not take some extra time to produce a report you feel comfortable showing to the membership of your supposedly democratic scholarly organization? Apparently not if you think your job is utilitarian public relations damage control."
"justice that is meted out according to politics and not according to facts is the justice of the Middle Ages. If justice is not based on the facts, if principles of justice are not applied universally, there is no real justice. Forms of "scholarship" that deny evidence, that deny truth, that deny the importance of facts—even if performed in the name of good—are dangerous not only to science and to ethics, but to democracy. And so they are dangerous ultimately to humankind."

Sep 25, 2019

#Neumann’s Party’s Over at #WeWork

Out as CEO. Just in time ....

WeWTF, Part Deux 

No Mercy / No Malice

Scott Galloway

"it's as if the lights have been turned on at a cocaine-fueled party that ended several hours too late. Everyone and everything suddenly looks bad, scary even."
What's worse than spending all day every day at home with two baby boys or downtown at AMEX? Engaging in fraud.  

The two most senior corporate communications exes, Jennifer Skyler and Dominic McMullan, both left recently, right before the IPO. Ok, so think about that. You are the belles of the ball of a firm about to IPO at $50 billion, and (in the case of Dominic) you announce, weeks before the IPO, "I've decided to take time off to spend with family in Brooklyn for now." Yep, that makes sense. You know us men, always leaving right before the IPO to spend more time with our families. 

The head of comms, Jennifer Skyler, left a few weeks ago for AMEX. ....Who wouldn't want to bolt from the second-most-anticipated IPO of the year to go flack about the new American Express Marriott Bonvoy Brilliant Card???

Predictions:

  • In the next 30 days, a series of explosive investigative journalism pieces will document breathtaking malfeasance at We.
  • In the next 60 days, a state attorney general, SEC, or other regulatory body will launch a formal investigations into We.
  • Over the next 12 months, SoftBank's Vision Fund will be shuttered.
See The Whole piece here: 
WeWTF, Part Deux | No Mercy / No Malice https://www.profgalloway.com/wewtf-part-deux/

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Sep 14, 2019

#NYC #PublicSchools’ Moral Absolutism on #Progressivism & #PoliticalCorrectness, Leaves Little Tolerance for Dissent

This is disheartening. When reality hits these kids, it will not be pretty...  

When you have time,  Read this long- where was the editor?-, but worthwhile piece on the situation with education in NYC, the US and Sadly elsewhere as well. 

The piece takes you on the writer's path placing his son/children in school in NYC, from the ridiculousness of the private schools to the ultimately disfunctional new NYC public school curriculum. 

Sad....

Here are some excerpts from the article:

New York City Public Schools have embraced The New Left

When the Culture War Comes for the Kids

Caught between a brutal meritocracy and a radical new progressivism, a parent tries to do right by his children while navigating New York City's schools.

By GEORGE PACKER
The Atlantic
OCTOBER 2019 ISSUE
Only New York would force me to wake up early one Saturday morning in February, put on my parka and wool hat, and walk half a mile in the predawn darkness to register our son, then just 17 months old, for nursery school. I arrived to find myself, at best, the 30th person in a line that led from the locked front door of the school up the sidewalk. Registration was still two hours off, and places would be awarded on a first-come, first-served basis. At the front of the line, parents were lying in sleeping bags. They had spent the night outside.

I stood waiting in the cold with a strange mix of feelings. I hated the hypercompetitive parents who made everyone's life more tense. I feared that I'd cheated our son of a slot by not rising until the selfish hour of 5:30. And I worried that we were all bound together in a mad, heroic project that we could neither escape nor understand, driven by supreme devotion to our own child's future.

…in recent decades, the system has hardened into a new class structure in which professionals pass on their money, connections, ambitions, and work ethic to their children, while less educated families fall further behind, with little chance of seeing their children move up.

When parents on the fortunate ledge of this chasm gaze down, vertigo stuns them. Far below they see a dim world of processed food, obesity, divorce, addiction, online-education scams, stagnant wages, outsourcing, rising morbidity rates—and they pledge to do whatever they can to keep their children from falling. They'll stay married, cook organic family meals, read aloud at bedtime every night, take out a crushing mortgage on a house in a highly rated school district, pay for music teachers and test-prep tutors, and donate repeatedly to overendowed alumni funds.
Two years later we transferred him to a public kindergarten.

We had just had our second child, a girl. The private school was about to start raising its fee steeply every year into the indefinite future. As tuition passed $50,000, the creatives would dwindle and give way to the financials. I calculated that the precollege educations of our two children would cost more than $1.5 million after taxes. This was the practical reason to leave.

But there was something else—another claim on us. The current phrase for it is social justice. I'd rather use the word democracy, because it conveys the idea of equality and the need for a common life among citizens. No institution has more power to form human beings according to this idea than the public school. That was the original purpose of the "common schools" established by Horace Mann in the mid-19th century: to instill in children the knowledge and morality necessary for the success of republican government, while "embracing children of all religious, social, and ethnic backgrounds."
...
Who was driving the new progressivism? Young people, influencers on social media, leaders of cultural organizations, artists, journalists, educators, and, more and more, elected Democrats. You could almost believe they spoke for a majority—but you would be wrong. An extensive survey of American political opinion published last year by a nonprofit called More in Common found that a large majority of every group, including black Americans, thought "political correctness" was a problem. The only exception was a group identified as "progressive activists"—just 8 percent of the population, and likely to be white, well educated, and wealthy. Other polls found that white progressives were readier to embrace diversity and immigration, and to blame racism for the problems of minority groups, than black Americans were. The new progressivism was a limited, mainly elite phenomenon.

In 2013, four families at our school, with the support of the administration, kept their kids from taking the tests. These parents had decided that the tests were so stressful for students and teachers alike, consumed so much of the school year with mindless preparation, and were so irrelevant to the purpose of education that they were actually harmful. But even after the city eased the consequences of the tests, the opt-out movement grew astronomically. In the spring of 2014, 250 children were kept from taking the tests.

The critique widened, too: Educators argued that the tests were structurally biased, even racist, because nonwhite students had the lowest scores. "I believe in assessment—I took tests my whole life and I've used assessments as an educator," one black parent at our school, who graduated from a prestigious New York public high school, told me. "But now I see it all differently. Standardized tests are the gatekeepers to keep people out, and I know exactly who's at the bottom. It is torturous for black, Latino, and low-income children, because they will never catch up, due to institutionalized racism."

Opting out became a form of civil disobedience against a prime tool of meritocracy. It started as a spontaneous, grassroots protest against a wrongheaded state of affairs. Then, with breathtaking speed, it transcended the realm of politics and became a form of moral absolutism, with little tolerance for dissent.

We took the school at face value when it said that this decision was ours to make. My wife attended a meeting for parents, billed as an "education session." But when she asked a question that showed we hadn't made up our minds about the tests, another parent quickly tried to set her straight. The question was out of place—no one should want her child to take the tests. The purpose of the meeting wasn't to provide neutral information. Opting out required an action—parents had to sign and return a letter—and the administration needed to educate new parents about the party line using other parents who had already accepted it, because school employees were forbidden to propagandize.

We weren't sure what to do. Instead of giving grades, teachers at our school wrote long, detailed, often deeply knowledgeable reports on each student. But we wanted to know how well our son was learning against an external standard. If he took the tests, he would miss a couple of days of class, but he would also learn to perform a basic task that would be part of his education for years to come.

Something else about the opt-out movement troubled me. Its advocates claimed that the tests penalized poor and minority kids. I began to think that the real penalty might come from not taking them.

In the name of equality, disadvantaged kids were likelier to falter and disappear behind a mist of togetherness and self-deception. Banishing tests seemed like a way to let everyone off the hook. This was the price of dismissing meritocracy.

Adults who draft young children into their cause might think they're empowering them and shaping them into virtuous people (a friend calls the Instagram photos parents post of their woke kids "selflessies"). In reality the adults are making themselves feel more righteous, indulging another form of narcissistic pride, expiating their guilt, and shifting the load of their own anxious battles onto children who can't carry the burden, because they lack the intellectual apparatus and political power. Our goal shouldn't be to tell children what to think. The point is to teach them how to think so they can grow up to find their own answers.

Our son knew about the worst betrayals of democracy, including the one darkening his childhood, but he wasn't taught the principles that had been betrayed. He got his civics from Hamilton.

…the writing was minimal and the students, when questioned, had little to say. They hadn't been encouraged to research their topics, make intellectual discoveries, answer potential counterarguments. The dioramas consisted of cardboard, clay, and slogans.
...
I wanted the plan to succeed, but I had serious doubts. It came festooned with all the authoritarian excess of the new progressivism. It called for the creation of a new diversity bureaucracy, and its relentless jargon squashed my hope that the authors knew how to achieve an excellent education for all. Instead of teaching civics that faced the complex truths of American democracy, "the curriculum will highlight the vast historical contributions of non-white groups & seek to dispel the many non-truths/lies related to American & World History."

"Excellence" was barely an afterthought in the plan. Of its 64 action items, only one even mentioned what was likely to be the hardest problem: "Provide support for [district] educators in adopting best practices for academically, racially & socioeconomically mixed classrooms." How to make sure that children of greatly different abilities would succeed, in schools that had long been academically tracked? How to do it without giving up on rigor altogether—without losing the fastest learners?

We had faced this problem with our daughter, who was reading far ahead of her grade in kindergarten and begged her teacher for math problems to solve. When the school declined to accommodate her, and our applications to other public schools were unsuccessful, we transferred her to a new, STEM-focused private school rather than risk years of boredom. We regretted leaving the public-school system, and we were still wary of the competitive excesses of meritocracy, but we weren't willing to abandon it altogether.

The Department of Education didn't seem to be thinking about meritocracy at all. Its entire focus was on achieving diversity, and on rooting out the racism that stood in the way of that.

Many had just heard about the new plan, which buried the results of an internal poll showing that a majority of parents wanted to keep the old system. We were presented with a slideshow that included a photo of white adults snarling at black schoolchildren in the South in the 1960s—as if only vicious racism could motivate parents to oppose eliminating an admissions system that met superior work with a more challenging placement. Even if the placement was the fruit of a large historical injustice, parents are compromised; a policy that tells them to set aside their children's needs until that injustice has been remedied is asking for failure. Just in case the implication of racism wasn't enough to intimidate dissenters, when the presentation ended, and dozens of hands shot up, one of the speakers, a progressive city-council member, announced that he would take no questions. He waved off the uproar that ensued. It was just like the opt-out "education session" my wife had attended: The deal was done. There was only one truth.

De Blasio's schools chancellor, Richard Carranza, has answered critics of the diversity initiative by calling them out for racism and refusing to let them "silence" him. As part of the initiative, Carranza has mandated anti-bias training for every employee of the school system, at a cost of $23 million. One training slide was titled "White Supremacy Culture." It included "Perfectionism," "Individualism," "Objectivity," and "Worship of the Written Word" among the white-supremacist values that need to be disrupted. In the name of exposing racial bias, the training created its own kind.

calling out racism and getting rid of objective standards won't create real equality or close the achievement gap, and might have the perverse effect of making it worse by driving out families of all races who cling to an idea of education based on real merit. If integration is a necessary condition for equality, it isn't sufficient. Equality is too important to be left to an ideology that rejects universal values.

When his teacher assigned students to write about how they felt about their identity, letting the class know that whiteness was a source of guilt for her, our son told her that he couldn't do it. The assignment was too personal, and it didn't leave enough space for him to describe all that made him who he was.

"Isn't school for learning math and science and reading," he asked us one day, "not for teachers to tell us what to think about society?" He was responding as kids do when adults keep telling them what to think. He had what my wife called unpoliticized empathy.

Read the whole piece here:
New York City Public Schools have embraced The New Left


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