Bank collapses, helpful scientific failures, and failing up. [Quartz](%2F%2Fqz.com/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/GVyoF-hkUwXjXSpR6jVay2xov3QVEYL6eWmHfG3xS18=302) Sponsored By [A photo of a band playing in front of a shiny golden backdrop that says MoviePass. Everyone is smiling delightedly.](%2F%2Fqz.com%2Femails%2Fquartz-obsession%2F1850469054%2Ffailure-bank-collapse-teaches-humans-how-to-succeed%2F/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/EN9zIl0xUKRyOnlpkrKfKAoq997SxOI8O_rztguDJ4g=302) Photo: Getty Images (Craig Barritt) Itâs what comes after On May 1, First Republic Bank collapsed. JPMorgan Chase was there to pick up the pieces, but the damage was doneâfor the third time in as many months, a US bank had failed. Failure, of course, is subjective. Is it a failure that JPMorgan was forced to acquire a doomed bank, or is it [a victory for Jamie Dimonâs empire](%2F%2Fqz.com%2Fwhy-did-jpmorgan-chase-buy-first-republic-out-of-receiv-1850390595%2F%3Futm_source=email%26utm_medium=Quartz_Weekly_Obsession%26utm_content=1850469054/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/cqoGJxGNHZjgr53ZwWcGBfTVFiKqiHaUZqrwSx8s1Sg=302)? When Sam Bankman-Friedâs FTX collapsed, was it the nail in cryptoâs coffin, or [an opportunity to rewrite the rules](%2F%2Fqz.com%2Fhow-did-sam-bankman-fried-get-away-with-peddling-ftx-1850430042%2F%3Futm_source=email%26utm_medium=Quartz_Weekly_Obsession%26utm_content=1850469054/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/WC1jsrljyHZ5_Y3Hy7cHm_mYk2xK8alhh44H33ErrKA=302)? Be it an institution, a piece of pop culture, or a persona, the sting of failure is visceral. On a physiological level, itâs chemical: Failure directs [the brain to release cortisol](%2F%2Feducationaladvancement.org%2Fblog-rewire-your-brain-for-success-when-you-fail%2F/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/Bu4F2d2NBmEnMwBY0mnDZdypmjE8KP_MZQ53EvyJzRQ=302), increasing our heart rate and breathing. For businesses, failure is usually measured in dollars, like FTXâs [$8 billion fuck-up](%2F%2Fwww.cnbc.com%2F2022%2F12%2F18%2Fhow-sam-bankman-fried-ran-8-billion-fraud-government-prosecutors.html/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/kMc9BZbC0iBsA7K7T3xM95uWXgf_Ea9Ct-GhZZaQyEE=302) or [Theranosâs $0 valuation](%2F%2Fwww.forbes.com%2Fsites%2Fmatthewherper%2F2016%2F06%2F01%2Ffrom-4-5-billion-to-nothing-forbes-revises-estimated-net-worth-of-theranos-founder-elizabeth-holmes%2F/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/W-iqm84XPWTMXsWVrzypeqRV8DyqhtRBfIITZDldpdw=302). At its worst, [failure carries a human toll](%2F%2Fqz.com%2Fguide%2Fboeings-current-crisis%2F%3Futm_source=email%26utm_medium=Quartz_Weekly_Obsession%26utm_content=1850469054/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/ePKw4QEOLNqBiA-oauvg6IOOByACfp3uAByejYNU1Fw=302). However itâs experienced or measured, failure is, of course, intertwined with existence. In entrepreneurship, itâs often necessary; in medical discovery, sometimes celebrated; and in culture, [our favorite obsession](%2F%2Fwww.fastcompany.com%2F3051669%2Fwhat-highly-successful-people-know-about-failure/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/6WmG3vI9fTYfr0tOKch9BWXgfUvst6vcQG7Izs9UIHs=302). Did this intro fail to get your attention? Sponsor content by Deloitte [Deloitte]( Explore the current landscape of AI perception with our survey of professionals in the field, available now. [advertisement][advertisement][advertisement] [Read more.]( This one thing about bank failure What if there was a public tech bank, one that would not only provide stability, but allow more long-term planning for tech projects that could improve the lives of generations to come? In the [latest episode](%2F%2Fqz.com%2Fpublic-tech-bank-svb-us-government-1850462385%2F%3Futm_source=email%26utm_medium=Quartz_Weekly_Obsession%26utm_content=1850469054/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/OxvUZM_6pudOmzovwro2wvNWwJnHBgLBXq4nvqXkcnc=302) of the Quartz Obsession podcast, economics reporter Nate DiCamillo explains to host Scott Nover why SVBâs failure is the perfect moment to rethink how we finance innovation. ð§ [Listen right now!](%2F%2Fplayer.megaphone.fm%2FQMIA1331850604/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/cAdNK_eXFuNIwRSbCruxR2t8FgYPKgk9981dWS_D5Sw=302) â
Subscribe wherever you get your podcasts: [Apple Podcasts](%2F%2Fpodcasts.apple.com%2Fus%2Fpodcast%2Fquartz-obsession%2Fid1587735076/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/lsUBhsVcMW8hNEZEL7qYLOV47k0lQZ0-FPRdUKpKAu4=302) | [Spotify](%2F%2Fopen.spotify.com%2Fshow%2F6yEQvRgukZ7LJGdGXNi1BT/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/Ar_7DnfFBkT83TpaerzznBSun7rXqmmxy-BZK-cZ39w=302) | [Google](%2F%2Fpodcasts.google.com%2Ffeed%2FaHR0cHM6Ly9mZWVkcy5tZWdhcGhvbmUuZm0vcXVhcnR6b2JzZXNzaW9ucG9kY2FzdA/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/cPA6lCAB1zkGwIjzcB7kePhAgh6LjG9SV2-NdQJXhps=302) | [Stitcher](%2F%2Fwww.stitcher.com%2Fshow%2Fquartz-obsession/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/pz8T-lFg4eYUy5PHD-24fbqPYdSWwWDrzDPVgVsDQXk=302) | [YouTube](%2F%2Fwww.youtube.com%2Fplaylist%3Flist=PLWHhRzSHrMU-pjsEa8sIEwQuB3RhS0jes/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/NdG-zW4CknyBJVis8tzsoIcVXSu4oxofx57txhcHcpI=302) By the digits [90%:](%2F%2Fwww.failory.com%2Fblog%2Fstartup-failure-rate/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/u7SAdsL85l_tCrUmw6W2N999YHtum8fY3iCyEs4tiJY=302) Number of startups that fail [20%:](%2F%2Fwww.failory.com%2Fblog%2Fstartup-failure-rate/2/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/a8YSiicB74vlhoVMbJotINRhBBcmSodq6qhwXuJzG3M=302) Number of businesses that fail in their first year in the US [13:](%2F%2Fqz.com%2Fhow-did-sam-bankman-fried-get-away-with-peddling-ftx-1850430042%2F%3Futm_source=email%26utm_medium=Quartz_Weekly_Obsession%26utm_content=1850469054/2/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/fGShtMM7FI4vcHvT_Z5eX0J_qW1yq-5GphHYWVcJFug=302) Criminal charges against Sam Bankman-Fried, the founder of the ill-fated crypto exchange FTX [404:](%2F%2Fwww.news.com.au%2Ftechnology%2Fonline%2Fsocial%2Fthe-404-not-found-error-page-has-origins-dating-back-to-the-1980s%2Fnews-story%2Fc30a3488e240067204fbcc0155dcbabe/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/mRI_jbQ46eZiJwFDIguk-ugbH9CEHcAO6jSjpsPNIzk=302) An error where a web page canât be found, possibly [named after the room](%2F%2Fwww.news.com.au%2Ftechnology%2Fonline%2Fsocial%2Fthe-404-not-found-error-page-has-origins-dating-back-to-the-1980s%2Fnews-story%2Fc30a3488e240067204fbcc0155dcbabe/2/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/iMrDLFYtMXlTNoFzsBaB8rL-lRmwV-qpmInbrdcpOQI=302) that housed the first web servers at CERN Origin story %2F%2Fqz.com%2Femails%2Fquartz-obsession%2F1850469054%2Ffailure-bank-collapse-teaches-humans-how-to-succeed%2F/2/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/-XiXOW5zrNsl_ZUx6ksVXB1CsRt6Ba-6S27lffiZ1fU=302 Photo: Reuters (Mick Tsikas) The first failures Linear thinking [has always had its limitations](%2F%2Fqz.com%2Femails%2Fquartz-obsession%2F1726565%2Fthe-cobra-effect/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/IutIjfcceJCCWAu59buqGkd4LXt1PBeK16Xo_jfJlG4=302). Chinese philosopher Lao Tzu was one of the first people to write about the necessity of failure. His Tao Te Ching (400 BC) says that âfailure is an opportunity,â driving home what Siddhartha Gautamaâs misadventures, Julius Caesarâs doomed Roman Empire, and Thomas Edisonâs botched experiments would later teach us: Human progress hinges on failure. First failures often have the power to redirect history, industry, and depending on their influence, our understanding of existence. One of the most notable scientific failures was the 1887 Michelson-Morley experiment. It was an attempt to find a luminiferous ether that propagated light waves, and it utterly failed. But many historians believe [it helped Albert Einstein](%2F%2Foxsci.org%2Fedward-w-morley-the-michelson-morley-experiment-and-its-successful-legacy-of-failure%2F/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/qOlwqfJc4dfNWpjgbmwv6OgjGqfTiX_G-RHr5KZ8yJY=302) one day arrive at his theory of special relativity. Even the worldâs first computer bug, discovered in 1947 (it was an actual moth disrupting the electronics in the systemâs hardware) advanced our understanding of [how to debug equipment and secure systems](%2F%2Feducation.nationalgeographic.org%2Fresource%2Fworlds-first-computer-bug%2F/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/BfyhXkJx9HNO5eCorzCpxtX9iHeJYudgM8_CRL1WOZU=302). Quotable âShe felt covered in failure and she felt sure that people could smell and see it on her. The failure was like a fine coating of ash, after a fire. But it wasnât only on her skin; it was in her nose, in her mouth, in her lungs, in her molecules becoming part of her. She would never be rid of it.â âGabrielle Zevin, Tomorrow, and Tomorrow, and Tomorrow Sponsor content by Deloitte [Deloitte]( Explore the current landscape of AI perception with our survey of professionals in the field, available now. [advertisement][advertisement][advertisement] [Read more.]( Pop quiz %2F%2Fqz.com%2Femails%2Fquartz-obsession%2F1850469054%2Ffailure-bank-collapse-teaches-humans-how-to-succeed%2F/3/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/ZgjWXiLoaiPOk-T29OkBFBH-ZfrbJYQ7WsXCJOBPM7M=302 Gif: (Giphy) What was the largest ever US box office bomb, in terms of money lost? A. Cutthroat Island (1995) B. John Carter (2012) C. A Christmas Carol (2009) D. Cats (2019) Donât fail to scroll to the bottom of this email to find the answer. Brief history [~9th century BCE:](%2F%2Fwww.pompeionline.net%2Fen%2Farchaeological-park-of-pompeii%2Fhistory-of-pompeii/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/s-IvgUkWj7730MRTroBH3C1-sE2p5mXkZzK2DUOb5mo=302) The ancient city of Pompeii is built next to Mount Vesuvius, which erupts in 79 AD and destroys the city. [1986:](%2F%2Fchnpp.gov.ua%2Fen%2Fabout%2Fhistory-of-the-chnpp%2Faccident-of-1986/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/DeDJawsoBjH0S9B41t3Xgkczkx3LovzKHKke_MxkqHM=302) The No. 4 reactor at the Chernobyl Nuclear Power Plant in Pripyat, Ukraine, fails. [2007:](%2F%2Fwww.lrl.mn.gov%2Fguides%2Fguides%3Fissue=bridges/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/ZQD7qXivLBgii1DZ9iQ_ov5cIeMPIoHIc2I75MzeEtY=302) The Interstate 35W bridge in Minneapolis collapses over the Mississippi River, killing 13 people and injuring 145. [2011:](%2F%2Fworld-nuclear.org%2Finformation-library%2Fsafety-and-security%2Fsafety-of-plants%2Ffukushima-daiichi-accident.aspx/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/aUxZLxRPrVHz_h4Xb4ByseIj7oWufzkxUWWUYwIDU3s=302) The Fukushima Daiichi Nuclear Power Plant in Japan melts down as a major earthquake and subsequent tsunami disable its reactors. [2016:](%2F%2Fwww.forbes.com%2Fsites%2Fmatthewherper%2F2016%2F06%2F01%2Ffrom-4-5-billion-to-nothing-forbes-revises-estimated-net-worth-of-theranos-founder-elizabeth-holmes%2F/2/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/w8HPKgLCn_E5qfV90xpvDbkF_iNR7f_aJTS1j9gN_M8=302) Forbes lowers its valuation of Elizabeth Holmesâs company Theranos from $4.5 billion to $0. [2019:](%2F%2Fwww.theguardian.com%2Fbusiness%2F2019%2Fdec%2F20%2Fwhy-wework-went-wrong/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/sVPYI1gmZeuVmHsV7LJ7FZE6djdr0cIkEHfYSMR5QXE=302) WeWork launches and then calls off its IPO in the span of six weeks. Fun fact! Thereâs an optimal rate of failure for learning: [15%](%2F%2Fwww.sciencedaily.com%2Freleases%2F2019%2F11%2F191105113457.htm/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/Dsl4lo4JI3aTbJgeHGLbg6i7kmFJY-2oG2hEGJI0OVU=302). Machine learning experiments have found that when computers are right only 85% of the time, they get smarter, faster. Take me down this ð° hole! Power fail On May 17, 2023, Liz Truss traveled to Taiwan to talk about China. Yes, that Liz Truss, the one who couldnât lead the UK [longer than a head of lettuce could stay fresh in the fridge](%2F%2Fqz.com%2Fthe-uk-medias-liz-truss-vs-lettuce-watch-was-as-brilli-1849681694%2F%3Futm_source=email%26utm_medium=Quartz_Weekly_Obsession%26utm_content=1850469054/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/jOuzf6uQB-vBV7z2BsqgZo3TkaqTOVfW_K4-NqUoMtU=302) and who, during her brief tenure as prime minister, made a [£30 billion policy blunder](%2F%2Fwww.theguardian.com%2Fpolitics%2F2022%2Fnov%2F12%2Frevealed-the-30bn-cost-of-liz-trusss-disastrous-mini-budget/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/BNUiaJ161TrXLsd_DbSVNgaw6mnpa94q-ILsKlUxytY=302) thatâs still haunting the countryâs economy. âWhat if the most effective way to deal with failure is to deny it ever happened?â Observer columnist [Catherine Bennett](%2F%2Fwww.theguardian.com%2Fprofile%2Fcatherinebennett/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/ZhdnAjIxoEPQf94aj5ucBCwV5_nv69mFUvQIDpkxdRg=302) asked in a Guardian piece on the price of failure, which, for some elites, is starting to look a lot less like a cost and rather a reward. Bennett framed Trussâs trip as a bit mad and impressive. Rejecting, and even rewarding, failure at the public policy-making level shows just how endemic this type of thinking has become. Thereâs also a power element involved. Political scientist Adam Lerner [put it this way](%2F%2Fwww.duckofminerva.com%2F2021%2F10%2Ffailing-upwards-and-global-elitism.html/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/cYUvgiWPgwa7sCEkwjuokO6iimZBeHpypJ1xL8OOgCs=302): âFailing upwards seems uniquely about powerâboth the power of those who facilitate it and the power-hungry who benefit from it.â Failure hasnât undergone any radical change from the days of Lao Tzuâs philosophizing, but maybe the lack of accountability for the powerful has. Go to jail for insider trading, [make the cover of Sports Illustrated](%2F%2Fwww.si.com%2Fextra-mustard%2F2023%2F05%2F15%2Fmartha-stewart-featured-2023-si-swimsuit-cover-model/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/36HO-0iJJsNVwkpFDEXVSATzzkglzUg4Fu0gVVshQJ4=302); be convicted as a con artist, [get a Netflix series based on your life](%2F%2Fwww.townandcountrymag.com%2Fleisure%2Farts-and-culture%2Fa38962970%2Fwhere-is-anna-delvey-today%2F/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/ohqI1TY08vcuynV1uBVVkGuxixUGw4zPtYlzO3zZp3Q=302). The philosophical question of the moment may be: What happens when thereâs only a very blurry line between learning from failure and denying it? Poll %2F%2Fqz.com%2Femails%2Fquartz-obsession%2F1850469054%2Ffailure-bank-collapse-teaches-humans-how-to-succeed%2F/4/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/1rSRR-HBU6XwnXDsOZbfNJdlwbZfjV2dd5dwFoQtPt4=302 Gif: (Giphy) How do you feel about failing upward? - Redemption is so sweet
- Without accountability, itâs a farce
- Iâm still haunted by my failed math tests Please, succeed in responding [to our query](%2F%2Fwww.surveymonkey.com%2Fr%2FM26YY3Q/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/E89Z9nIn5tUesPvHRsg6tpbA0YTwlkdT9QNHuKzdPfk=302). ð¬ Letâs talk! In last weekâs poll about [the Streisand Effect](%2F%2Fqz.com%2Femails%2Fquartz-obsession%2F1850442241%2Fthe-streisand-effect-when-hiding-becomes-plain-sight/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/VcKcnY7jaFCxfOOvHEmjs7l-0dA6Z_kOVpdTJGPBrFU=302), we asked about another kind of Streisand effectâthe kind the actual singer has on your heart and soul. 56% of you replied that youâre more into the song âBarbra Streisandâ by Duck Sauce than you were by the music of Babs herself. ð¤ [Tweet this!]( ð¤ [What did you think of todayâs email?](mailto:talk@qz.com?cc=&subject=Thoughts%20about%20failure%20&body=) ð¡ [What should we obsess over next?](mailto:talk@qz.com?cc=&subject=Obsess%20over%20this%20next.&body=) Todayâs email was written by [Morgan Haefner](%2F%2Ftwitter.com%2Fmorgan_haefner/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/BKObQOenweT1jIkv8ooWxap66weskJEJMxjLI9dPawg=302) (failed to turn the draft for this email in on time), and edited and produced by [Annaliese Griffin](%2F%2Fauthory.com%2FAnnalieseGriffin/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/PZxzV0dH0k18d9D-5ByI2Mep0qkoUX07-BG1GoJJ7SQ=302) (would have been on the 35W bridge at the moment of collapse, if her friend hadnât made a well-timed wrong turn). The correct answer to the pop quiz is B., John Carter. It chronicles the interplanetary adventures of John Carter, based on the Barsoom books by Edgar Rice Burroughs. It [is estimated to have lost](%2F%2Fen.wikipedia.org%2Fwiki%2FList_of_biggest_box-office_bombs/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/WfC67cU1HgxwOFbTTqYA021FRFJevl62OLjsPRZHE14=302) between $132 million and $236 million. [ð View or share this email online.](%2F%2Fqz.com%2Femails%2Fquartz-obsession%2F1850469054%2Ffailure-bank-collapse-teaches-humans-how-to-succeed%2F/5/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/Ln4R85HdyoRcZOedI33v1wd5_XxsJceaStsuhTyMQxs=302) 1290 Avenue of the Americas, New York, NY 10104 © 2023 G/O Media Inc. [Unsubscribe](%2F%2Fqz.com%2Fnewsletter%2Funsubscribe%3FsubscriptionToken=4da3ee5afa774c51f11017f8d0e31196da52e648-113627%26utm_source=quartz_newsletter%26utm_medium=email%26utm_campaign=2023-05-24/1/010001884f4dbe87-13819837-6e86-47ae-8a84-41032e3afed2-000000/JgiMbWNYEx78FNYaTjSYEaH7wR0I7_h7X_dy0DgX36Q=302)