thecolor12

month

June 2009

30 posts

dear economists

there’s considerable evidence of deflation at my local CVS. about one fifth of the store’s inventory is either 2-for-1 or three-for-$5. there was also 11 or 12 person check-out line tonight, sunday night, at around 8:30. that seems like a lot for CVS, don’t you think?

i hope this was helpful to you. i guess i just thought you should know.

May 31, 20090 notes

May 2009

31 posts

2005 Email -- Hegelian Bread Theory

I also want to touch on three other quintessentially South Philly
family businesses—Sarcone’s, Caci’s and Geno’s—to show that making a
traditional product and building a thriving, modern business are not
always in direct opposition. Sarcone’s, which lies on the border of
the traditional Italian Market and gentrifying Bella Vista, makes
bread that’s somewhere in between Lanci’s and Amoroso’s—they’re
self-consciously traditional but use some machinery to make bread soft
enough for hoagies and sandwiches. Caci’s bread, meanwhile, is even
more rugged than Lanci’s, with a dark brown crust that’s almost like a
blackened cracker wrapped around the loaf, but while Lanci’s business
is faltering Caci, who brought his son on board, is making good money
off his South Philly neighborhood clientele. Geno’s, even more than
Amoroso’s, exemplifies how can carry the banner for “real”
Philadelphia culture on the national radar without losing its status
as a beloved neighborhood institution.

My working theory right now is that these traditional family
businesses have three stages:

1. You sell modest daily bread that just happens to be authentic, but
that isn’t overtly marketed as such. (Caci’s, Lanci’s.)

2. You realize that your product is special, and that you can sell
more of it if you market it as being authentic. So you start to
enshrine your traditions and hang framed portraits of your ancestors
on the walls. Lines form outside. Celebrities and politicians start
putting you on their Philly itineraries. This is where authenticity
becomes conscious of itself. (Geno’s, Sarcone’s.)

3. You discover that if you water down the product slightly, broaden
distribution, and continue to label it as traditional and authentic,
you can make even more money. This is where authenticity becomes a
franchise. (Amoroso’s.)

Ultimately, I want to use bread to figure out what we mean when we say
“real” Philly, and how our notions of what constitutes authentic
Philly cheesesteaks, bread, whatever are formed and develop over time.

May 31, 20090 notes
May 29, 200919 notes
get on with it

As recent findings have established certain facts it is desirable that they should be recorded, for quite eminent authorities have believed that the

May 28, 2009-1 notes
meanwhile, inside starbucks..
  • i could call them
  • and just engage kevin
  • and just say hey, what's up
  • we were busy
  • i met with him
  • introduced to the deputy chair
  • now we're at a disadvantage
  • we don't have the marketing materilas
  • i'd call him up
  • the question is where we want to go from here
  • i want to see if i can help
  • a lot's changed
  • i'll walk away from a client if i can't help them
  • i'd give that a try
  • but so far we're out of a lot of money in pocket expense
  • five meetings and nothing
  • yeah i'd try to transition to steve
  • it's just a couple blocks away
  • i dunno. he'd have another hard break?
  • well, she's taking a procurement class
  • are you gonna start up a web 2.0 consultancy you think?
  • i dunno tom. i don't know which way is up. you know, i'm just trying to take it all in. not to press or anything like that ... i'm just trying to take it all in and make a plan.
  • the first thing he asked me when he saw me was "how's that house going?" no offers of ... useful.
May 28, 2009-1 notes
negotiation outside of starbucks
  • Plato: Excuse me, sir ... I'm trying to get some money together for a sandwich.
  • Smith: What kind of sandwich would you like?
  • Plato: Actually, I want to get some money so I can pay the bus fare. Do you have any change?
  • Smith: I'm sorry, I can't help you.
  • Plato: Could you maybe buy me a pack of cigarettes, then?
  • Smith: I can't, but would you like a sandwich?
  • Plato: Nah, that's alright.
May 28, 20090 notes
authority / optics

For in the sciences the authority of thousands of opinions is not worth as much as one tiny spark of reason in an individual man. Besides, the modern observations deprive all former writers of any authority, since if they had seen what we see, they would have judged as we judge.

-Galileo, via Scott Horton

May 28, 20090 notes
May 28, 20090 notes
WTF

my Jungian Post 9-11 Spirit Eagle totally deserved to be reblogged.

May 28, 20090 notes
May 27, 20091 note
selection bias / optics

all nature is so full, that that district produces the most variety which is the most examined.

- gilbert white, 1768

May 27, 20090 notes
these three things go together

these people are addicted to logic … these people have alarm clocks. they get up early.

-ted nugent at the alamo, 2008

May 27, 20090 notes
email from Nov. 2005

I found two good stories at the Russian Yellow Pages:

-Alex Mogilyansky’s story is the classic American immigrant story. Russian guy comes to America, works hard, figures out how to make a decent living by making life a little easier for his fellow Russians.

-Andrew Mogilyansky is Alex’s son, and his is more like the standard capitalist genius Bill Gates story. Alex, a top Russian checker player, brings brilliant mathematician son to the U.S. The son figures out business backwards and forwards and makes several million dollars from scratch before his 35th birthday through a variety of start-up ventures. He does this modestly and invisibly, working out of a dingy office park in Southampton with three employees. He also manages to use his computer programming talents to raise more than a million dollars for the victims of the 2004 Beslan hostage tragedy.

So. The offices of the Russian Yellow Pages are just north of the city on Industrial Boulevard in Southampton. They’re class B or C office space with low drop ceilings, fluorescent lights, and water stains on the walls. It’s 6pm and father and son both have a few more hours of work ahead.

ALEX’S STORY

Alex Mogilyansky, founder and publisher of the Russian Yellow Pages, is in his office playing checkers online. He is wearing suspenders, cufflinks, and a dress shirt with an open collar. He looks like a struggling publisher nearing the end of a long workday—his hair and desk are in complete disarray. He was born in Georgia, Russia in 1942 to a lawyer and a gynecologist. They lived in a one-room house without running water and shared a communal bathroom with three other families. In 1979, Alex won the champion checker player in all of Russia, and by 1988, the Soviet government was paying him to play checkers full-time. At one point he was ranked fifth in the world and he is presently the number one or number two player in the United States. Alex was divorced and living in Riga. Andrew lived with his mother in St. Petersburg. He was a “wunderkind,” Alex says, talking about the theory of relativity at age 10 and writing an article on theoretical physics at 16 that was later translated into English and published in an American journal. The USSR was at war with Afghanistan and had mandatory military service. Alex was worried that his son would be killed in the army, or that his “brains would be damaged” as life in the Soviet army is worse, he said, than any American prison. So he moved to Northeast Philadelphia to live near relatives.

In explaining this decision, Alex related a long conversation he had with his mother, who was worried he’d go broke in the U.S.

“Maybe you are right,” he told her. “Maybe I will die homeless on the streets of New York. But by that time my son will be Vice President of General Motors. Maybe he will forget me, and I will be lying on the streets of New York in the rain and rats will lie around me and someone will be passing me and will drop newspaper, and I will take newspaper and read it, and read the story of my rich son who has forgotten his father, who doesn’t care that he is lying among rats.

“And I told mother, do you understand what I will do when I read that?

“‘What?’ she asked me.

“I will raise my fingers like this.”

At this point he made the victory sign.

Alex is a very good storyteller, and he likes to go on about how the U.S. is a straight and honest country and democracy is the best of all systems. He was speaking very slowly and deliberately and at this point it occurred to me that he’s either the most sincere America-loving guy in the world or there’s something in his past that he doesn’t want to tell me, or he’s afraid that if he doesn’t come across as sufficiently patriotic in this article the Dept. of Homeland Security will pay him a visit. I actually got this same feeling when I was talking to Natalla. Who knows. Maybe I’m overthinking this.

But anyways, on with Alex’s story.

Alex gets a job in a candy factory, but his hands are too clumsy and he’s fired on his first day. His next job was as a substitute teacher in a public school. The kids, 11th graders, run around and talk to each other and don’t care about learning at all. This outrages him, so he gives a speech about how they’ll have plenty of time to talk after graduation, because they’ll all see each other again … in the line to pick up their welfare checks! “That is your fate,” he said, with tragic Russian gravity. This silenced the kids and Alex finished the day’s math lesson. But he was burnt on being a substitute and lost his subsequent job at a call center with the 1991 recession. When a doctor friend came back from a business trip to California with a copy of their Russian Yellow Pages, he knew this was his chance.

“To be an immigrant means to work 24 hours a day,” Alex likes to say, and he’s built the RYP up into what he says is the biggest Russian publication in the United States. He has four editions: Philly, NJ, NY and Baltimore-Washington, with 115k total circulation. He also has two small free NE Philadelphia Russian language newspapers, 7k circulation. He’s currently trying to close a deal with the North Hampton City Council to produce his first English pub, a North Hampton Yellow Pages. He’s really excited to be publishing something in English for the first time. “It will be the major victory of my life to produce such a book,” he said. Business, he says, “It is like checkers. It is a game, a great fight, but with different prizes.”

ANDREW’S STORY

Alex is worried about his son Andrew. Andrew works too much. “Europeans work to live and Americans live to work,” he says, and indeed, Andrew, working out of an office down the hall from his father, only got four hours of sleep last night and needs a shave. Beneath his slight build, schlumpy attire, and surface modesty lurks a deep intellectual confidence and will to power that reminds me of Russian. He fixes a cup of instant coffee to wake up for our interview.

After immigrating with his father, Alex got a degree in applied math at Columbia. His freshman year, he won $25,000 first prize of the William Lowell Putnam exam, which physics and math students from Canada and the U.S. compete for. He’s married to a Russian Temple MBA who works for the Russian Yellow Pages. They live in Richboro.

Alex wanted Andrew to become a scientist after graduation, but Andrew chose business, because “I wanted full freedom.” He uses his math skills as a serial entrepreneur, building models, analyzing markets, and exploiting inefficiencies. In the past, he’s traded electricity contracts and financial instruments in Eastern Europe. For a time he was one of the most prominent businessmen traveling through the Ukraine, which won him a meeting with the country’s president and a side gig advising the chairman of Crimea, a Ukranian province, on foreign affairs. Right now he exports about $1.5m in used cars every month, buying them at auctions and shipping them overseas to Eastern Europe. This makes him, he says, the region’s largest exporter of used cars. The business made “his employer” a comfortable seven-figure profit last year, his employer being himself, Andrew Mogilyansky, in the guise of IBEX Global, a shell company at an offshore tax haven. His revenues are doubling every quarter. He buys the cars sight unseen with the help of two employees and a computer database system of his own design, which he’s constantly tweaking. His buyers and customers can do deals automatically by logging into a server and checking off little boxes—a process that would normally require five times the number of employees and much more overhead. “My specialty is systematizing and creating tools of analysis. If there is a machine that prints money and business is that machine, I know how to attach an electric motor to the machine so it spins faster.”

Andrew also owns the rights to sell high-tech German-made firefighting equipment to the U.S. and Eastern Europe, which he’s been doing for three or four years now. But revenues from that business have topped off at about $500k a year, so he’s focusing on the used cars.

Andrew’s other big achievement is MoscowHelp.org, which raised $1.2 million for the victims of the Beslan terrorist attack (1,200 hostages taken, 338 killed) and won Andrew accolades from the New York Times and the Russian ambassador. The Red Cross, by comparison, raised only $600k. MoscowHelp became the charity of choice because of its transparency and low overhead—so Andrew’s spent less than $7,000, or less one percent of monies raised, to file corporate charity paperwork. He started the charity the night after the attack from his apartment. “When it happened I knew that if I don’t do this than nobody will. I was able and it was my obligation.” This is how he explained it to his father.

SO WHAT’S THE STORY HERE?

-The story here, as I see it, is a story on the father and the son, pegged it to the large number of highly educated Russians moving into the NE, who as a group make more per capita than the U.S. average. These guys seem to be exemplary and unusually talented Russian immigrants as opposed to the average Russian immigrant who starts a small business and buys an ad in Alex’s Russian Yellow Pages.

-I could also try to broaden what I have by meeting more successful Russian business owners in the NE. I asked Alex if he knew of any others like him. He mentioned Fresh Made, a dairy company that makes the thick Kefir drink sold at Super Fresh, and said he’s try to come up with some others.

Let me know if you have any questions on this. This restaurant called the Golden Gates seems to be the epicenter of the whole NE Russian scene. Unfortunately I wasn’t able to go on this trip as they’re only open on Thursdays, Fridays and Saturdays. It would be fun to take Andrew and his wife out to dinner there and see what they have to say. I left the office at 9 pm because both men clearly had a lot of work left to do, but after three hours most everything they were saying was still fascinating, so I might need to talk to them some more before I figure out what the best story is here.

Cheers,

May 25, 20091 note
sharpie cakes

this is the space where we (we?) will call out all the fake sharpie cakes that are out there masquerading as the real sharpie cakes. beware you fake sharpie bakers — the truth will out.

May 25, 20090 notes
elevator pitch

-What’s going on? You’re not scoffing.

-I’m scoffing on the inside.

May 25, 20090 notes

Some diagnostic situations contain a lot of variables. Any given symptom may have several possible causes, and further, these causes may interact with one another and therefore be difficult to isolate. In deciding how to proceed, there often comes a point where you have to step back and get a larger gestalt. Have a cigarette and walk around the lift. The gap between theory and practice stretches out in front of you, and this is where it gets interesting.

May 24, 20090 notes

…work the body as well as the mind with all-weather pools, fully-equipped gym, aerobics classes, personal trainers, court sports, jogging tracks, full-service salon, hydrotherapy pool, yoga classes.

And if that weren’t already enough…High Teas, lectures on great art, luxurious spa, paddle tennis, wine tastings, cooking classes, art auctions, first-run movies, a piano bar, gambling casino with table games and slots, late night action in the Crow’s Nest lounge, and Club Hal for kids and teens (bring the kids!).

You can even purchase carbon offsets when you book your trip and help our partners at Ecologic reforest an area in Guatemala recently devastated by mudslides, planting enough trees to offset the carbon emissions produced by each Nation Cruise passenger.

May 21, 2009-1 notes
islands

We just saw one third of our wealth destroyed. We saw the bezzle exposed, and the better half of capitalism revealed as nothing more than pillage, as taking other people’s money because you play a better game of cards. There’s some anger. And yet the bedrock value system—work hard => make money => buy things—it’s intact. Completely intact. Because the fact is, we have it pretty good, materially speaking. Capitalism has covered its own ass by raising our standard of living up far beyond the level where serious structural change would ever be on the table. We’re conservative organisms. We’re not going to mass in the streets when food and shelter are so cheap and so available. Why take the risk? Why talk about starting over? Frankly, I’m not sure we could do any better. So the government owns the banks now. So what? Change these days is something that happens via email, or in a hearing, or at the bottom of a document signed far away. Change, at the most, means a change in ownership. The idea of ownership, and all the privileges that go with is, is secure. And this leaves me at thirty, asking, if I see a wickness (or at the very least an ugliness) but have little hope of changing it in my lifetime, what do I do? An embittered ‘nothing’? Not a good answer. Either it has to change, or I do. The best answer I’ve been able to come up with is to play with it, in some small but significant way. This is the idea of the island, the small institution that exists within or alongside the prevailing system, but which runs according to a logic all its own. Its reasons run orthogonally to society’s, not against it. It produces meaning on its own terms, and in the meantime, it’s also got to make some money.

May 19, 20090 notes
i'm still here.

writing things into tumblr, from time to time.

May 19, 20090 notes
south korea notes

i know very little about south korea. but i know more than i did when i first arrived here, some twelve days ago. please allow me to share with you the benefits of my knowledges:

-south korea has disproportionately high numbers of coffee-and-donut shops, downtown driving ranges, basement bars, and billiard halls. there are signs for billiard halls everywhere.

-everything is cheap here, except for coffee, which is slightly more expensive than equivalent U.S. coffee

-south koreans have long enjoyed taking cheap vacations to seoul and staying overnight in bathhouses with heated floors. these were wholesome vacations, for the whole family. now the sign for “bathhouse” is the same as the sign for “motel.” it looks like a hot bun with waves of heat rising off of it.

-there are students in uniform walking to school at 7am in the morning, and students wearing the same uniform apparently walking home from the same school at 11pm at night

-if you walk down a crummy alley in a crummy neighborhood you will find a school that teaches the flute and the piano

-ivy league and quasi-ivy brands are strong here. even dentists market themselves with latinate coats of arms and massachusetts placenames

-there’s an empty frame in the big downtown bookstore that’s supposed to one day be filled by you, the south korean winner of the next nobel prize for literature. i have been urged to write a story about why japan has so many nobel science winners and south korea, so few. south korea has a chip on its shoulder.

-there are wrappings of studded metal and astroturf around the utility poles to prevent the posting of bills

May 17, 2009-1 notes
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