the twitter comedy

 

I like twitter. I get a lot of info from it. For instance, when Libgen fails, I always find somewhere on twitter how to access it again.

However, it has an exaggerated effect as a social media platform, since all the meat press – tv, magazines, papers – have an exaggerated sense of it, which they push on down the line. The racists who get their N word jones on twittering and trolling get a lot more attention than the cops apartheid style management of urban life and the systematic racism of the economic system, from job hiring to mortgage making, that does its best to insert a bit of misery into the day to day of  African-Americans.

So Elon Musk’s buying of Twitter has the downside that pretty surely he is going to run it into the ground. However, I am fascinated by the business aspect. I am fascinated by the way Musk is hopping down a path once hopped down by Forbes’ Magazine’s boy genius of 2004, Eddie Lampert.

For those who don’t remember: Eddie Lampert was one of the evil billionaires hatched by Goldman Sachs. After learning how rent-seeking, a totally useless and harmful enterprise, gets you warm praise in the press and among the country club set at the Hamptons, Lampert struck out on his own and eventually bought Sears Roebuck.

The youth of today probably don’t recognize that name – or the name of K-Mart. One has to reach for the references – Sears was the Amazon of its time, K-Mart the Walmart. Sears, when I was growing up, was the family store. This didn’t mean that we liked Sears: quite the contrary. We bought at Sears and bitched about Sears in equal measure. My Grandfather, in the 1950s, got so made at a Sears employee they had a fistfight – or so my Pop used to say. Sears, however, had sales people whoknew their products, and for my family, which tended to treasure power toolsand such, Sears was an Eldorado. Its Craftsman tool line had everything. And atreasonable prices! So I grew up among Craftsman power drills and Craftsman  Electric Hand Saws. Ah, I can hear, as I write those words, the agonizing whine of a blade going through a 4 x 4, the sawdust in a plume behind it. This , as much as rock n roll, was the music of my youth.

Even in 2006, one might be astonished to learn, the capital value of Sears was greater than that of Amazon. In the 90s, my introduction to the world wide web – and even discussion groups – was made via Prodigy, brought to you by Sears Roebuck. But at this point, even, the upper management had lost the thread. Which is what a predator like Lampert was looking for.

The usual buy with debt, dump, pay yourself cycle followed. Unlike Twitter, however, Lampert’s little accountants had noted that Sears had tremendous real estate holdings in cities. Sell those off! Fire half the staff, hire anybody, train nobody, sell of the product lines, create sightlines in stores that told the customer nothing,  let each expedition to Sears be a buying nightmare, take the pensions and, by legal tricks, sever it from the employees who had made the store prosper, and so on. A good recap of the Lampert story, the story of America in the age of Obama and Trump, appeared inInstitutional Investor here. https://www.institutionalinvestor.com/article/b1c33fqdnhf21s/Eddie-Lampert-Shattered-Sears-Sullied-His-Reputation-and-Lost-Billions-of-Dollars-Or-Did-He

 

Musk is no Eddie Lampert. He’s a super salesman, but as a businessman he sucks, and as an investor you could train a duckling to make better decisions. Thus, he has saddled himself with a company that is incapable of giving him a return on his money. He has no big pension fund to drain, he has no real estate to vend. He is paying more in interest on the debt he piled up on Twitter to buy it than twitter will ever pay out. In cases like this, the Sears formula – shit on an American capitalist institution, sit back and watch your fortune grow – will be difficult if not impossible to reproduce. Musk of course has a desire to be up there with the Tech legends (all of them disgusting in their own ways): Gates, Jobs, Zuckerberg. I predict that in the future, he will be ranked, instead, with Murdoch, the man who spent 12 billion dollars for Myspace. Myspace, remember myspace?  In 2011, it was sold for 34 million dollars.

Ecce Twitter.