Complex Systems with Patrick McKenzie (patio11)

Ben Reinhardt, Founder of Speculative Technologies and an expert in science funding, joins the discussion to dissect the flaws in the U.S. science funding structure. He critiques the antiquated categories of basic, applied, and development research, explaining how they often misrepresent scientific workflows. Reinhardt highlights the overlapping nature of projects like semiconductors and emphasizes the crucial role of process knowledge in successful experiments. He also challenges the efficiency of university tech transfer offices and advocates for innovative funding models that empower researchers.

Billy Gallagher, CEO of Prospect, shares insights from his venture investing background to help employees navigate the complexities of startup equity. He explains the pitfalls of relying on simplistic equity advice and the critical importance of understanding options versus RSUs. Gallagher discusses the nuances of early exercising options, the implications of taxes, and the value of informed decision-making in managing equity. They also touch on the growing trend of tender offers and the impact of startup equity on financial growth and career trajectories.

Explore the curious world of title insurance, which boasts a staggering 5% loss ratio compared to most insurance types. Discover why most Americans pay for this service even though it rarely pays out. Patrick dives into how property ownership is recorded in the U.S. and the quirks that lead to this costly scenario. He sheds light on the confusing marketplace where title insurance is sold and the incentives that keep buyers from shopping around. Plus, consider innovative alternatives like Attorney Opinion Letters and the implications for homeowners.

Discover how deposit insurance operates as a crucial safety net, ensuring you don’t lose money when banks fail. Learn about the risks that aren’t covered and the often-overlooked realities of counterparty risk in fintech. Dive into the intricate process behind bank failures, from liquidity issues to the FDIC's strategies for maintaining stability. Patrick sheds light on the costs associated with bank failures and the deeper government backing that keeps the system intact. This knowledge is vital, especially in uncertain economic times.

Delve into the innovative world of home improvement financing, where window installers can secure loans in just 15 minutes. Discover why traditional banks shy away from small loans, and how modern technology has shifted the lending landscape learned from past financial mistakes. Explore the four-party system that enables rapid approvals and clear compliance measures that protect consumers. Plus, learn how origination tech in solar financing has been adapted for windows, creating an efficient and transparent process.

Patrick McKenzie dives into the critical vulnerabilities in financial systems, prompted by the CrowdStrike outage that crippled U.S. banks. He discusses the dangerous consequences of regulatory guidance that led to software monocultures. The conversation also touches on the booming stablecoin market, its potential risks for regulation, and the accountability issues in Silicon Valley. Lastly, McKenzie urges regulators to better understand AI risks, emphasizing the need for diverse engineering perspectives to mitigate systemic failures.

Ricki Heicklen, a game designer and educator known for her innovative use of games in teaching, joins the conversation to share insights from the Metagame conference. They discuss how simplified game design enhances learning and the blurred lines between player and character identities. Ricki explains exciting megagame mechanics and the challenges of designing engaging player experiences. Patrick shares his journey of using LLMs to create compelling narratives in games, examining the emotional weight that emerges from minimal world-building.

Oliver Habryka runs Lightcone Infrastructure, the force behind LessWrong and the Lighthaven venue. He delves into how LessWrong evolved into a vital forum, the challenges of managing unusual venues, and the intricacies of fundraising for nonprofits. Highlights include the unexpected impacts of building regulations, the intricacies of hotel maintenance, and innovative community financing strategies. Habryka also shares insights from the effective altruism ecosystem, discussing how recent events have reshaped donor trust and engagement.

Clara Collier, editor and publisher of Asterisk Magazine, dives into the challenges of building truth-driven institutions in today’s media landscape. She discusses why she chose print in the digital age, exploring the unique benefits of long-form journalism. Their conversation highlights the history of German universities and the decline of trust in science communication—especially during the pandemic. Clara argues for honest reporting to rebuild trust, warning that misinformation's long-term effects could last for generations.

Chris Best, CEO and co-founder of Substack, delves into the platform's journey from a simple newsletter tool to a media powerhouse. He discusses how subscription models foster better writer-audience relationships than traditional ad-based approaches. Chris highlights Substack's commitment to press freedom during challenging times and reveals innovative features like AI-powered video production. He also explains the impact of revenue guarantees on attracting writers, transforming career options, and providing legal protection for independent creators.