Next up on the essays shelf:
The New Gilded Age: The New Yorker Looks at the Culture of Affluence, edited by David Remnick
The New Yorker comes out with periodic compilations of essays, grouped under a category. There is one for the Profiles, one for the best of the Talk of the Town feature, one for humor writing. I am sure there are more, but these are the ones I own. My favorite compilation is this one, The New Gilded Age, which features financial writing from The New Yorker, not since its inception (like some of the other compilations), but in the crazy boom years of the mid-to-late 1990s. These are pieces written in real-time, before the bottom fell out, and they are fascinating.
I’m not a big financial person. I’m a freelance writer. I started out as an actress. I get by. But in the late 1990s, I “got in on” the ground-level of a couple of different start-ups (and this was all new and fresh then). I was in New York, in grad school. I had financial aid and everything but I needed a part-time job. My sister-in-law, who was one of those creative and practical people who is an asset to any organization because of her clear thought processes and enthusiasm (a huge component in “thinking out” any start-up), had gotten a job at a place called The Hub. Old-school AOL people will remember this: It was a “channel” on the Opening Screen of the old AOL interface, when it was still these little boxes that acted as safe little windows for the big scary Web. The internet was still relatively new, at least in terms of the general populace. I only got email for the first time when I went to grad school, and that was through school. I had usually made money through temp jobs and secretarial work, or answering phones, etc. But this was something fresh and new, I could work 20 hours a week programming the little AOL pages (using a coding language called “Rainman” – any Web geeks out there are going to remember all of this), and the pay was phenomenal. I could basically support myself FINE on 20 hours a week. (Those were the days.)
This was the dot com era, and there was major money to be made for doing … basically ridiculous meaningless things. What were we doing? Or selling? Nobody knew. It was the something “new”, the new thing! I made friends doing that insane gig that I still have today.
The Hub was affiliated with New Line Cinema (they had bought it or something? Can’t remember) so our offices were a floor below New Line corporate. You would walk up the spiral staircase into New Line proper, and there you were surrounded by cubicles, fluorescent lights, white boards, Power Point, and perky girls in form-fitting suits and alligator pumps. You know. Civilization. But down that spiral staircase? You were full-on in wacko dot com world. There were mannequins dressed in school girl slut clothes. There were no overhead lights. There was more than one lava lamp. Dart boards were on the wall, beanbag chairs were on the floor. We were barely presentable. If “corporate” was coming down to visit, we’d really have to clean up the place, and make it look just a little bit like a real office. You know, like take the cigarette out of the mannequin’s hand.
I used to work beside a guy named Pat, who was a surfer, a writer, a music-lover, and kind of brilliant in a very chaotic way. He was that brand-new thing: an online personality. He was born to be an online personality. He had nutso hair that was a different color each week, and he was doing … things online on a daily basis, hosting chats, writing articles about stuff that he found interesting, and he made shitloads of money. Only in the late 1990s. He was a crazy Irishman.
We were friends. We sat side by side, at our respective computers, and he would reach out with his left hand and play with my ear lobe as we worked. He never asked permission. We never discussed it. It’s strangely bizarre when I look back on it … but that whole time was bizarre.
Upstairs was corporate America. Downstairs was Pat, with jet black hair standing up straight, or blonde streaked surfer dude locks, or totally bald, having shaved it all off in a drunken frenzy. Downstairs was Pat touching my ear lobe as he typed with his other hand. I never said, “What’s up with my ear lobe?” I can’t remember the first day he did it, but I didn’t slap him away, and so the ear lobe thing went on the entire time we both worked there, as darts flew towards the bullseye behind our heads, as people sat around us working at their computers with huge headphones on listening to music, as people lay in the beanbag chairs eating Krispy Kremes and having “integration meetings” … and we all were working on … what, exactly?
Great people. I was very fortunate to get in there, because once that job ended, most of us moved to another start-up, one that had created such buzz that we were featured everywhere, in The New York Times, Wall Street Journal, the co-founders were on Oprah, on Charlie Rose. I got a job, again, programming the AOL version of the site (back in the day, you would duplicate your content for the AOL version: there would be a Web version, and then an AOL version for the millions of people who were scared of the Web, and relied on those little AOL discs to provide them the software that made the world less frightening). That job continued to morph and change, as the web world morphed and changed. We had an important relationship with AOL, worth millions of dollars (based on clicks, which … well, they don’t really do that anymore, but it was always a fascinating thing to watch people place value on something based on clicks-received and try to put a dollar amount on it. AOL represented huge money). I managed the relationship with AOL. I did that for years. They had a channel on AOL where our content fit in perfectly, and so the little AOL pages would have editorial links back to our content. I was in charge of that. I came up with editorial calendars, I worked with the AOL producers to give them what they wanted, and put together huge Excel sheets where the traffic from all of these links was analyzed. It was fun. I flew down to the AOL headquarters on occasion, which was a truly Truman Show experience. This was in the glory days of AOL. Hanging out on their campus down in Dulles was like entering an alternate universe. The main lobby was gigantic and drenched in light, with a huge motto on the wall saying something like, “AOL will be bigger than the automobile.” Everyone who worked there was very nice, and they loved our content, and flying on the little AOL jet from JFK to Dulles was always an adventure for a broke artistic New Yorker like myself.
Our offices were in the Flatiron neighborhood, and were prototypical “Internet” offices. An old building, giant old-fashioned windows, a sort of sprawl to the desks, nothing that looked remotely corporate. (That would eventually change.) The people who sat at the desks were like myself: artists, everyone had bands, or photography studios, or crazy weekend hobbies. Everyone was young. We were in on the ground-floor of something exciting and lucrative, and a mere 10 years ago, we all were waiting tables and answering phones for money. Now they paid us extremely well for what still always felt like recreation.
This start-up went public. It was a very very exciting time. Suddenly we would get stern emails from on high telling us not to talk to journalists, and not to get fooled into answering questions if someone got you on the phone. We had huge meetings in a vast conference hall with guys from Wall Street who told us how the offering would go, and what we needed to do. This is all text-book, in terms of start-ups and the timing. What happened to us happened to so many of these start-up companies, and very few are still around (the one I worked for is, however, still around: Chastened and battered, perhaps, but still in existence!) The day of the IPO was thrilling. We all sat at our desks and watched the stock price sky-rocket on the little tickers we had on our desktops. It was unbelievable. We all had decisions to make: hold onto our shares, or sell. Eventually, when the stock was at what seemed to be its highest point (it couldn’t go much higher …. could it???) I took the plunge, called the number I was told to call, talked briefly to the nice guy who answered and said, awkwardly, “Uh … yeah. Sheila O’Malley. Uh … sell????” I half-expected him to say, “Who the hell is this?” But he said instead, “Will do, Ms. O’Malley.” He sold. I won’t say how much I made but it was more money than I personally had ever had in my entire life, before or since. I couldn’t believe it. I was just a lowly AOL Rainman programmer, doing staged readings and auditioning and attending acting class at night. What was my life??
This was the mania of the Start-up Era. Our startup was about content, not about services. We did not provide a service, like, say, Amazon (a giant start-up of that era). We had no product. But this was back in the day when people really believed that Content could somehow translate into Millions of Dollars. But how to measure what we actually owned? Were we over-valued on the market? Probably, yes! That was a very common thing that happened back then, and our start-up had a “spin”, and a “slant” that was very appealing to people writing about the Internet, and people watching the Internet. But that was a big issue with us: how to translate what we were doing into cash. People didn’t PAY for our content. If AOL linked to one of our pieces on their homepage, the traffic was so overwhelming it would sometimes slow down our whole site. So … how do you VALUE a link like that? Entire departments were created to talk about/think about this very issue. Of course, we had ads on our site. And, eventually, like most content-driven sites, it was the ads that gave us our money, but it was certainly not enough to pay for our warehouse-cool offices, our salaries, our perks. The money, then, was based on something “not real”, essentially: the feeling that the content we provided was new, essential, and on the front-wave of a world-changing movement. Seriously, this is how people thought. History has, of course, shown us that people WILL pay for content, but you have to set up the right model for it.
I’m very glad I sold, by the way, because – again, textbook – the stock soon began to plunge back down again. We were bought. We were sold. We were bought again. We were sold. The crash came. They laid off something like 200 people on one day. I made the cut. The following year, another 70 people laid off. I made the cut again. We were bought yet again. It was a roller coaster ride. I continued to make the cut. It eventually came to the point where I begged my boss to lay me off. I didn’t want to be the last one standing in this stupid thing. My dad used to joke, “Just turn the lights off on your way out, Sheila.” My job continued to morph and change. I wasn’t a careerist. I had no skills, really, but I can learn anything, people like me, and I am very organized. So I was shuffled around from department to department. Finally we were bought by a gigantic television network, and I was offered a job to be the liaison between our company and a very popular (that’s an understatement) morning television show. I would pitch our content to the producers of said TV show, get our experts on the show, run polls, and, in general, try to make everyone happy with the relationship. It was a stressful job, and for the first time, I worked on weekends, I worked late nights, I would take a car service home. It was exciting, though. I loved learning about the television show, and getting there at 5 in the morning to help set up segments, and keep our experts happy, etc.
Things were changing, though. The relationship with the network ended, and I was sort of homeless for a while, at my own job. I didn’t even have a desk. I was given another job, programming the home page of the site, which had gone through a huge re-branding, re-vamping. I could sense the writing was on the wall for me, though. The company had changed so much. I could almost feel my own redundancy. By that point I had been there 11 years. Believe it or not, I was the most senior person there, in terms of years. Everyone else was “new”. Even the co-founders were gone, bought out, moved on. Another day of lay-offs came, in 2009, and finally (ha) I was laid off. My main fear was that the money was going to run out and that I would not be given a proper or satisfying severance. I didn’t want to work someplace for 11 years and be given two months’ pay. But the company did right by me, gave me a gigantic severance package, plus benefits, AND I could ALSO collect unemployment. Then began another chapter in my life, begun in 2010, when I had the breathing space to start pursuing freelance writing opportunities, which I did. I didn’t have to have a day job for a while. I wrote. I went to Block Island. I went to Los Angeles. I wrote my play. I upped my pursuit of film criticism jobs.
And that was all made possible, financially, by the little start-up that had hired me back in the day as a freelancer, to put little Rainman coding into the little AOL interface to mirror our site for AOL users. It was a great job. I will always be grateful to them. And I will always be happy that they “did right by me”, by giving me the severance package I felt I deserved.
This biographical story was fun to write, because those were high-flying crazy days: everything was new, fresh, and you were watching people you knew become millionaires … for reasons that weren’t quite apparent. It was a young crowd. Enterpreneurs and idea-people were valued. The sky seemed to be the limit. Some of these start-ups were valued higher than entire airlines. That is obviously insane and shows, without a shadow of a doubt, that we were all in a bubble. A speculative bubble.
The bubble worked out great for me, though.
And so The New Gilded Age is really reminiscent to me of those times, the things I experienced, the feeling we got in those vast conference halls, as financial guys schooled us in the ways of Wall Street, and we all took notes. Everyone was a beginner. It was thrilling. And better than that: interesting.
I’m not normally interested in finance, at least as a spectator sport, although I realize I am in the minority. But The New Gilded Age, with its elegant writing and elegant format, is deeply satisfying. There are profiles (this is listed under the heading “The Barons”) of major players at the time, both in the Internet world (like today’s essay), and not (Donald Trump is profiled, Alan Greenspan – a FASCINATING essay).
The first essay in the collection is called ‘The Connector’, by Larissa MacFarquhar, and it is a profile of Jason Calacanis, a name that will, of course, be very familiar to Internet people. He’s still around. ‘The Connector’ was written in 1999, at the time that Calacanis was top of the heap in terms of entrepreneurs/web-watchers. He had created a magazine called Silicon Alley Reporter, reporting on New York’s internet scene. There was also an email version and a newsletter. It is indicative of the mania of the time that this nobody, really, could come from out of nowhere, create something called the “Top 100” list, of Internet entrepreneurs, and it would be treated as valid and set-in-stone, as though Silcon Alley Reporter was on the level of Forbes or something. But Calacanis was ambitious, arrogant, and had his eye on the future. He wouldn’t be one of those web-guys, but he would make them famous. And in doing so, he would become part of the warp and weft of this new explosion of wealth and opportunity. And that pretty much happened. He treated the Web CEOs like movie stars, putting them on the cover of his magazine in detailed beautiful photographs, as though they were Jeff Bridges or Michelle Williams. Much of what Calacanis excelled at was “spin” and there was a lot of spin in those days. There was huge competition about his “100” list: everyone wanted to be on it. It was devastatingly important that you appear on that list, dammit!
Calacanis was a schmoozer, a wheeler, a dealer, he knew everyone, he was young, and he was being treated like an Oracle from the Black Lagoon. There is a sense of unreality to all of it, if you go back and look at that specific time. MacFarquhar’s piece, which is both investigative essay and profile (she hangs out with Calacanis, goes to editorial meetings, follows him around) is a fascinating glimpse of the world at that time. She describes the staff of Silicon Alley Reporter: 8 people, 2 of whom were interns who looked like they were in high school. No one was over 30.
Every essay in this collection is world-class, with that typical New Yorker spin. There are personal essays from those who were in financial dire straits, personal essays about playing the stock market. Since they are all written in real-time, in the late 90s, one of the greatest strengths of the collection is that it is a snapshot of The Mania. The crash was coming. Nobody wanted to listen to the Bad News tellers.
When the crash came, Silicon Alley Reporter died a quick death.
Here’s an excerpt from MacFarquhar’s essay about Jason Calacanis. I met Jason Calacanis once or twice, but I do not know him.
The New Gilded Age: The New Yorker Looks at the Culture of Affluence, edited by David Remnick; ‘The Connector’, by Larissa MacFarquhar
It is generally agreed that it was the “100” list, inaugurated late in 1997, that put Calacanis on the map. No matter what anybody thought of him and his magazine, there was something about a published ranking that carried a potency all its own. Everybody wanted to be on the list, and everybody who made it cared who ranked above and below him. Better still, those who made it tended to note that fact in their publicity material, and this had the effect of bolstering the list’s (and the magazine’s) reputation. There had been new-media awards ceremonies before the list came out, but they tended to focus on the doomed technology of CD-ROMS, and they rewarded artistic achievement. Calacanis’s list rewarded importance, and, for the most part, that meant business. It was not just a matter of money, however. If the list had simply tabulated corporate wealth, it would have been nothing more than an accounting exercise. By measuring importance, it preserved that crucial dimension of mystery and subjectivity which made it productively controversial. “The ‘100’ list creates tremendous resentment,” one Alley figure who’s made it on both times says. “Behind Jason’s back, most people say nasty things about him, but to his face they are as nice as nice can be, because to be on the map of New York cyberbusiness they’ve got to be in his ‘100’.”
Calacanis knows this, of course, and welcomes it as a sign of clout. “People who don’t get on it probably think I’m a little full of myself, a little drunk with the power of the magazine,” he says, and shrugs. “They feel spurned because I don’t love them, and they think – wrongly – that if I loved them my love would make them successful. God forbid someone should look at himself in the mirror and think, I had a bad idea.”
But the list served a second function, too: it signalled that on lower Broadway, where a minute ago there had been nothing, there were now a hundred new-media people worth writing about. As such, it is a key element of Calacanis’s campaign to convince the world that Silicon Alley is the place in which the new-media business will come gloriously into its own. His argument, which he repeats frequently, is that now, as in the early days of any medium, it is the technology people who make the money and attract the attention, but later on only the creative types, in New York and Los Angeles, will have a hope of inventing the new genres of entertainment and advertising required to arrest the evanescent attentions of the Internet consumer. Calacanis has had limited success in promoting this view. “There are thousands of little guys in New York,” Henry Blodget, an Internet analyst at Merrill Lynch, says. “And they’re little for a reason, which that content isn’t big business.”
In the early afternoon, Calacanis rode a taxi uptown to the Sheraton on Seventh Avenue, to drop in on a trade show sponsored by Jupiter, an Internet market-research company. He strolled past the exhibits, sampling the atmosphere. “Look how empty this place is,” he said, sotto voce. “My show? Packed.” He wandered over to the beverage stand, poured himself a cup of coffee, looked about in vain for milk, and shook his head genially as though docking points in a game. “My show will be classy,” he pronounced. ” We serve wine and mimosas at lunch, and we have sushi. It’s a more mature environment.”
Calacanis’s conferences, like his “100” list, are masterpieces of social engineering. He creates a complex and ingenious caste system involving concentric layers of hierarchy, of dinners within parties and interviews within panels, of exclusivity both real and apparent: there are events you pay to get into, events you have to be important to get into, and events you pay to get into in order to meet those who are important, who get in free. He compensates his speakers with flattery (for most, he doesn’t even cover expenses), knowing that few C.E.O.s can resist being presented to their colleagues as thinkers. He adds glamour by throwing in modish cultural figures – an actor from Star Trek, a rapper, a producer of The Blair Witch Project, the Belgian anarchist responsible for the Bill Gates pie-throwing incident. For entertainment, he invents games, such as Ready, Set, Pitch!, in which, before a live audience, would-be entrepreneurs try to talk a panel of venture capitalists and financiers into giving them seed money.
Having sized up the booths and found them wanting, Calacanis rode the escalator down to the first floor and sauntered over to chat with James Healy, of IN2.com. Healy’s company had recently been acquired, and Calacanis wanted to congratulate him. (Healy had consulted him on the wisdom of the move, and Calacanis had put him in touch with a few people.) A skinny young man approached, wearing a turquoise polo shirt with his company’s logo embroidered on it in yellow. “I want to go big,” the young man confided to Calacanis, holding his hands apart to show he wasn’t kidding around. “Really big. You’ve heard of convergence? Well, I want to do all media. I’d like to sit down with you sometime.” A smiling young blond woman with noticeable cleavage and a badge identifying her as a representative of Excite@Home wandered over to chat and pitch. A large young man carrying a heavy bag lingered awkwardly during their conversation, then moved in to offer his card. He represented a company named @Philly, and had been very happy to learn that Calacanis was planning a trip to Philadelphia. Calacanis listened to each, cocking his ear for the punch line, nodding rapidly and shifting from foot to foot. He tries to avoid pitches, but he realizes that, as he puts it, “if I only hang out with billionaires, I’ll miss the next wave.”