Uber was the most valuable private company in history, but the public market has not been as enthusiastic. The reason explains a lot about how the tech industry works.
But some of it should go to Silicon Valley’s cultural divergence from the business reality. Investors loved the company not as an operating unit, but as an idea about how the world should be. Uber’s CEO was brash and would do whatever it took. His company’s attitude toward the government was dismissive and defiant. And its model of how society should work, especially how labor supply should meet consumer demand, valorized the individual, as if Milton Friedman’s dreams coalesced into a company. “It’s almost the perfect tech company, insofar as it allocates resources in the physical world and corrects some real inefficiencies,” the Uber investor Naval Ravikant told San Francisco magazine in 2014.
Jair Bolsonaro spent most of his career on the political fringe, until his message started to resonate with a country reeling from economic hardship and a widespread corruption scandal.
President Trump welcomed Brazil’s far-right president, Jair Bolsonaro, to the White House on Tuesday. We look at the back story of Mr. Bolsonaro, whose campaign tactics, incendiary rhetoric and brash style have earned him the nickname “Trump of the tropics.”
Standing next to Mr. Trump at the White House, Mr. Bolsonaro pledged that the United States and Brazil would “stand side by side in their efforts to ensure liberties and respect to traditional family lifestyles, respect to God our creator against the gender ideology or the politically correct attitudes, and against fake news.”
Mr. Bolsonaro has a long record of polarizing comments, but many Brazilians see in him the kind of disruptive, status quo-breaking potential that propelled Mr. Trump to victory in the United States.
Mr. Bolsonaro, who has vowed to clean up entrenched political corruption, is now fending off corruption allegations against his own administration.
When White House aides raised the issue with Judge Kavanaugh, he adamantly denied it and told them he did not even remember her.
.. They did what had never been done in a Supreme Court confirmation and put him on television to be interviewed, choosing Mr. Trump’s favorite network, Fox News.
Judge Kavanaugh, joined by his wife, seemed flat and mechanical as he retreated to the same talking points denying the allegations. Mr. Trump, who styles himself a master of television, thought his nominee came across as weak. Getting the clip of him denying the charges into the media spin cycle was important, but it was not enough.
.. The tide seemed to turn, oddly enough, when a third woman emerged with even more extreme allegations. Michael Avenatti, a brash and media savvy California lawyer who has been careening from one Trump administration brush fire to another, produced a statement from a woman alleging that Judge Kavanaugh in high school attended parties where women were gang raped. The woman, Julie Swetnick, said she was herself gang raped at one such party, though not by the judge.
Senator Charles E. Schumer of New York, the Democratic leader, rushed to the floor to insist that “Judge Kavanaugh should withdraw from consideration.”
Senator Susan Collins of Maine, a key swing Republican, was so troubled that she took a copy of Ms. Swetnick’s statement, highlighted and marked up, to a meeting of Republican committee chairmen. Senator John Cornyn of Texas went through it point by point with her to debunk it.
.. The Republican senators got into a lengthy conversation about Mr. Avenatti and how he could not be trusted and concluded that Ms. Swetnick’s claims did not add up. Why would she as a college student repeatedly go to high school parties where young women were gang raped? No one came forward to corroborate the allegation, and news reports surfaced about past lawsuits in which Ms. Swetnick’s truthfulness was questioned.
“This was a turning point,” said Senator Lindsey Graham, Republican of South Carolina. “That allegation was so over the top, it created a moment that was scary, quite frankly. But that moment was quickly replaced by disgust.”
The involvement of Mr. Avenatti, who represents Stephanie Clifford, the former porn star known as Stormy Daniels, particularly galvanized Republicans, reinforcing the idea that the allegations against Judge Kavanaugh were a political setup. One Republican congressional official called Mr. Avenatti’s involvement “manna from heaven.” From the other side, a Democratic congressional official called it “massively unhelpful.”
the notion that Mr. Avenatti tipped the scale was “wishful thinking” by Republicans who were bent on confirming Judge Kavanaugh at all costs.
.. credited Ms. Swetnick’s story with forcing Republicans to request an abbreviated F.B.I. investigation. “If it would have just been Dr. Ford,” he said, “I don’t think the investigation takes place.”
.. But Judge Kavanaugh’s angry outburst rallied Republicans. He went so far in expressing rage that he blamed the allegations on a plot to take “revenge on behalf of the Clintons” and he sharply challenged two of the Democratic senators about their own drinking.
During a break, Mr. McGahn told him he had to dial it back and strike a calmer tone. When he returned to the committee room, Judge Kavanaugh moderated his anger and apologized to one of the senators.
.. When Mr. Durbin asked Judge Kavanaugh to turn around and ask Mr. McGahn to request an F.B.I. investigation into the charges against him, Mr. Graham erupted in a ferocious, finger-wagging lecture. Other Republican senators began channeling their inner Trump and lashing out on Judge Kavanaugh’s behalf as well.
.. Ms. Collins said she would find it hard to vote yes without a sworn statement from Judge Kavanaugh’s friend Mark Judge denying that he saw what Dr. Blasey described.
.. Charles E. Grassley of Iowa, the Judiciary chairman, got a fresh statement from Mr. Judge within three hours to satisfy her.
.. the three joined other Republican senators in Mr. McConnell’s office to discuss what the F.B.I. investigation should look like. The three undecided Republicans settled on four people they wanted to hear from
Ms. Ramirez, Mr. Judge and two others identified by Dr. Blasey as being elsewhere in the house at the time she was allegedly assaulted.
.. That night Mr. Graham went to dinner at Cafe Berlin with Ms. Collins, Mr. Flake and Ms. Murkowski. They discussed whether a limited F.B.I. investigation might assuage them.
The list of four witnesses they selected, however, later struck Democrats as so constrained that they demanded a more expansive investigation. In the end, the F.B.I. interviewed 10 people, but not many others Democrats recommended.
.. Ms. Murkowski was struggling with what to do. She asked the committee staff to question Judge Kavanaugh’s friends about their understanding of terms from his yearbook like “boofing” and “Devil’s Triangle” to see if they matched his.
.. “The tactics that were used completely backfired,” said Mr. McConnell. “Harassing members at their homes, crowding the halls with people acting horribly, the effort to humiliate us really helped me unify my conference. So I want to thank these clowns for all the help they provided.”
.. Less helpful may have been Mr. Trump’s decision to mock Dr. Blasey during a rally in Mississippi
.. White House aides insisted that the president’s outburst fortified Republicans... Trump and other Republicans accused sex-crime victims protesting Kavanaugh as protesters paid by George Soros.. The GOP Senate whip, Sen. John Cornyn (R-Tex.), called the victims a “mob” and echoed the bogus claim that they were paid protesters. They deny victims’ very existence; they are non-persons — props sent by opponents to ruin a man’s life... Graham snorted that he’d hear what “the lady has to say” and then vote Kavanaugh in.Senate Majority Leader Mitch McConnell (R-Ky.) said he’d “plow right through” (more like plow over) Ford’s testimony and confirm Kavanaugh.
Republicans’ defense of Kavanaugh — that Ford and others were props of a left-wing plot and therefore lacked agency of their own — evidences the party’s attitude toward women.
.. You cannot say a party that embraces a deeply misogynistic president who bragged about sexually assaulting women and mocked and taunted a sex-crime victim; accepted a blatantly insufficient investigation of credible sex crimes against women in lieu of a serious one that the White House counsel knew would be disastrous; repeatedly insulted and dismissed sex-crime victims exercising their constitutional rights; has never put a single woman on the Judiciary Committee (and then blames its own female members for being too lazy); and whips up male resentment of female accusers is a party that respects women.
.. What’s worse is that Republicans who would never engage in this cruel and demeaning behavior themselves don’t bat an eye when their party’s leaders do so. Acceptance of Trump’s misogyny — like their rationalization of the president’s overt racism — becomes a necessity for loyal Republicans.
.. One either agrees or ignores or rationalizes such conduct, or one decide it’s a small price to pay (“it” being the humiliation of women) for tax cuts and judges. It’s just words, you know.
.. The Republican Party no longer bothers to conceal its loathing of immigrants, its contempt for a free press, its disdain for the rule of law or its views on women. Indeed, these things now define a party that survives by inflaming white male resentment. Without women to kick around, how would they get their judge on the court or their guys to the polls?
There are lots of details and surprises to come, but the end game of this presidency seems as clear now as those of Iraq and the financial crisis did months before they unfolded.”
We are now in the end stages of the Trump presidency.” What is it that’s gone on in the last few weeks or months that’s made you think this?
Adam Davidson: For a year and a half now, I’m one of several reporters who’ve been studying intently Donald Trump’s businesses, his relationships with people around the world. And as a rule, this group of reporters finds it increasingly shocking just how flagrant the Trump Organization was in dealing with some of the shadiest—frankly, in cases, purely evil—people who made their money in wildly illegal and corrupt ways.
I do think most Americans, including Trump’s hardcore supporters, have a general sense that this is a guy who isn’t going to be a stickler for the rules, and has probably done some sort of technically illegal things or shady things. But I don’t think the full lawless and also kind of pathetic and lame nature of the Trump business has entered the national narrative in the way I think it should... I’m suspecting, but I can’t say for sure—that Michael Cohen will have recordings or emails that show that the Trump Organization knew they were basically helping fairly evil people continue their crimes by putting the Trump brand on their projects so as to make them less suspicious, I think we’re going find it very hard for an awful lot of Republicans to support... Do you think Donald Trump is a good businessman, as a businessman, setting aside ethics?
No, definitely not.
He has, in sort of financial terms, either lost money or certainly barely made money over the course of his career. So if you start with control of $200 million of your father’s money, and one alternative is you just invest that safely in the stock market, and the other alternative is you do whatever business you do, he has lost compared to that sort of benchmark, at least for much of the time frame that he’s been in business.
So that is just a sign of, “OK, he’s a rich man,” but it’s different to start as a rich man and end up as sort of roughly exactly as rich. That’s less impressive to real business people.
.. The other thing is, especially in the real estate industry, you want to see someone amassing wealth—that over time, their holdings, their empire, is bigger, not smaller, and they’re not going to be taking as wild a risk as they were when they were younger because they’ve been able to amass a kind of sustainable wealth, a bundle of assets that are really worth something.
We certainly see that. There’s certainly plenty of people in New York real estate who, over the course of Trump’s career, have done exactly that. He hasn’t. He’s this brash guy doing big, loud projects in the 1970s, and he’s a brash guy doing less big, less loud projects in the 2000s, and by 2010, he’s basically a failed real estate guy who then starts a new career as, basically, a pitchman.
.. he’s richer than I am, and I know his followers seem to see that as really relevant. But if you look at his peers, if you look at any sensible benchmark, this is not a guy who’s really impressing a lot of people.
.. Regardless of how many bankruptcies he had, or how he’s compared to other real estate developers, he made himself into a universally recognized brand. It seems to me that even most of us who were given $200 million of our father’s money could not do that, so I’m wondering what you think that is and how you think that fits or doesn’t fit with what you say is his not-very-good business sense.
.. Over the course of Donald Trump’s life, branding has become much more central to how American businesses strategize, how they measure their success, etc. To say the obvious thing that everyone points to, Coca-Cola is sugar water that has the Coca-Cola brand on it. But even Boeing and others are very aware of the brand as a central part of their value, and we’ve learned a lot about how to manage brand.
Brands are a new thing. They’re commonly understood to have started probably with Ivory soap, maybe 130 years ago—1879, I think—and have developed into one of the central tools of American business. I think there’s been a dramatic sea-change over the course of the ’70s and ’80s and how we manage brands, how we think about brands.
If the test is simply, “Have people heard of it?” then I guess a lot of people have heard of him. But if the test is, “Has he been able to monetize that brand? Has he been able to turn that into real brand value and sustaining brand value and growing brand value, so that each year the brand itself is worth more?” that is not the case... There are, I think, 14 Trump hotels in the world, and that’s a fairly stable number. When you look at the projects that he’s been doing over the last decade, there was an attempt at a Trump Baku, Azerbaijan, an attempt at a Trump Mumbai, an attempt at a Trump Uruguay. It’s nothing like the incredible expansion of Four Seasons or Ritz-Carlton.
From a branding standpoint, it’s a pretty pathetic business, and we saw that in the just throwing his name on anything, no matter how peripheral or lousy the product is. I think one of the many things we can learn from Trump support is that a lot of people conflate fame with success, and trappings of wealth with actual wealth.
.. [Michael Cohen’s ] main job was not as a lawyer of any kind. His main job was as a deal-maker, as a guy who would travel the country and the world looking for possible projects, looking for partners who might want to get the Trump name on their hotel or buildings.
Within the Trump Organization, that was a very clearly distinct role—the deal-maker versus the lawyer role—and that was his primary role. So the reason I think he’s so significant is there’s this period of very rapid expansion into these overseas licensing deals. It’s sort of remarkable. Between 2006 and then really speeding up in 2010, ’11, ’12, into 2016, they’re just going all over the world. By “they,” I mean three people—Don Jr., Ivanka, and Michael Cohen—and they are signing deals with really famously corrupt people in famously corrupt parts of the world, doing virtually no due diligence that we can tell or that they can claim, and taking some enormous legal risks, all the while saying, “Well, we didn’t know they were bad. We didn’t know the details,” etc., etc... So he will have the email traffic that will tell us what, exactly, is happening. What, exactly, did they know about these partners? How aware were they of these partners’ illegality? Or how careful were they to not know? Because in an American law, being deliberately … it’s called willful blindness. So if I do business with you, and you constantly show up with all the telltale signs of a notorious criminal, and I never ask you, and I ask everyone not to tell me, that’s deliberate ignorance. That’s willful blindness and that’s, essentially, legally the same as actually knowing.
.. We know the role Michael Cohen played in trying to get a Trump Tower built in Moscow several years ago. You’ve been looking at the Russia story and at the Trump business story, and earlier you referred to journalists who are on the beat of the Trump business story. To what degree do you think that these are going to eventually meld and become the same story?
.. I think the bigger story is the Trump business story, and the Russia stuff is a subset of that. Look, Donald Trump is somebody who’s been trying to score big through business since the 1970s or 1960s. He’s a guy who’s been trying to make it politically for a couple years. So I’m pretty sympathetic to the argument that this really was not a presidential run. This was an effort to burnish his brand, to sell more properties around the world, and specifically to get a Trump Tower Moscow. I think that was a major, major goal for Donald Trump for reasons that still don’t quite make a lot of sense.
.. When the Paul Manafort charges broke and it became clear how much illegal activity he was engaged in, separately from his work on the Trump campaign, it was pretty striking that a guy like this could go around, and commit this many financial crimes overseas, and still be a lobbyist and work in Washington. Have you been shocked at how much white-collar crime seems to go unprosecuted or investigated until it is closely examined?
Yeah. It’s been really upsetting. I think one of the key lessons of all of this is just how little we prosecute white-collar crime in general, and particularly international white-collar crime
.. I will say, even in that Trump is an outlier, that the Trump Organization took risks, did work with partners that very few Americans would ever consider working with. So I don’t want to give the impression that he’s just run-of-the-mill, he’s just like everybody else, because that’s something I hear a lot, and that always drives me crazy. He’s not.
.. That’s not because, necessarily, all business people are moral. It’s because business people are supposed to be good at balancing risk and return. Take the Mammadovs that he did this deal in Azerbaijan with. As far as we can tell, Trump made $5 million or so from that deal. If he had done his due diligence and if he had learned, as he would have, that they were likely to be money laundering partners of Iran’s Revolutionary Guard, he faced a life-changing amount of fines and potential criminal liability. If you’re a billionaire, as he claims, then you shouldn’t do that for $5 million. It’s an absurd risk to take. It makes no sense at all, and we see him taking such risks again and again and again. So he really is an outlier. He’s not like everybody.