Why coffee in Portugal is so bad

The title of this blog post is the text I entered into my google search bar at Lisbon airport, on my way back to London last weekend. What Google showed me on top was a blog post titled “why coffee in Portugal is so good“. The contents of the post, though, had given me the answer.

In terms of coffee cultures, Spain and Portugal are rather similar. Coffee shops usually double up as bars, unlike in England for example. This means that the baristas aren’t particularly skilled, and so you don’t get fancy latte art. The coffees you get are thus espresso, espresso with some milk and espresso with lots of milk. The milk being foamed gives the coffee a good taste, in Spain that is.

The reason coffee in Portugal tastes bad is the same reason that coffee in France tastes bad – it is a result of colonialism.

During the years of the Salazar dictatorship, Portugal was economically isolated. This meant that it could only turn to its colonies for coffee. And the Portuguese colonies (not sure if Brazil is included in this since it became independent way back in the 1800s) exclusively produced Robusta coffee. And Robusta coffee, being inferior to Arabica, is roasted slowly, and produces a bitter brew. Which is what we uniformly got in our trip to Lisbon.

France had a similar story. Though there was no economic isolation, imports from its colonies were subsidised, and this was again largely Robusta coffee. And so, as the roads and kingdoms post linked above explains, coffee in France is bad.

I’m not sure if Spain got/gets most of its colonies from its erstwhile colonies. If it does, it goes a long way in explaining the quality of coffee in Spanish cafes, despite them doubling up as bars and not necessarily having skilled Baristas. For the likes of Colombia and Ecuador and Honduras produce absolutely brilliant Arabica coffee.

 

Mixing groups at parties

I normally don’t like mixing groups at parties I host – that sometimes leaves me as a “cut vertex” meaning that I have to personally take it upon myself to entertain one or more guests and can’t leave them to be “self-sufficient”. You might recall that a bit over two years ago, I had tried to use social network analysis to decide who to call for my birthday party.

However, for unavoidable reasons, we had to call a mixed set of friends to a party yesterday. We’re “putting BRexit” later this week (moving back to Bangalore), and considering that there were so many people we wanted to meet and say goodbye to, we decided that the best way of doing so was to call them all together to one place.

And so we ended up with a bit of a mixed crowd. The social network at yesterday’s party looked like this. For the sake of convenience, I’ve collapsed all the “guest families” into one point each. The idea is that while a guest family can “hang out among themselves”, they needn’t have come to the party to do that, and so it fell upon us hosts to talk to them. 

So the question is – with three hosts, one of whom was rather little, how should we have dealt with this assortment of guests?

Note that pretty much everyone who RSVPd in the affirmative came to the party, so the graph is unlikely to have been more connected than this – remove my family and you would have a few islands, including a couple of singletons.

Should we have spent more time with the families that would’ve been singletons than with those who knew other guests to interact with? Or was it only fair that we spent an equal amount of time with all guests? And considering that we could deal with guests on the right side of the graph “in twos”, did that mean we should have proportionately spent more time with those guys?

In any case, we took the easy way out. Little Berry had an easy time since there were two entities she knew, and she spent all her time (apart from when she wanted parental attention) with them. The wife and I were taking turns to buy drinks for freshly arrived guests whenever they arrived, and on each occasion we helped ourselves to a drink each. So we didn’t have to worry about things like social network dynamics when we had more important things to do such as saying goodbye.

I just hope that our guests yesterday had a good time.

Oh, and way too many conversations in the last two weeks have ended with “I don’t know when I’ll see you next”. It wasn’t like this when we were moving the other way.

 

Monetising the side bets

If you were to read Matt Levine’s excellent newsletter regularly, you might hypothesize that the market for Credit Default Swaps (CDS) is dying. Every other day, we see news of either engineered defaults (companies being asked to default by CDS holders in exchange for cheap loans in the next round), transfer of liability from one legal entity to another (parent to subsidiary or vice versa), “orphaning” of CDSs (where on group company pays off debt belonging to another) and so on.

So what was once a mostly straightforward instrument (I pay you a regular stream of money, and you pay me a lumpsum if the specified company defaults) has now become an overly legal product. From what seemed like a clever way to hedge out the default risk of a loan (or a basket of loans), CDSs have become an over-lawyered product of careful clauses and letters and spirits, where traders try to manipulate the market they are betting on (if stuff like orphaning or engineered default were to happen in sports, punters would get arrested for match-fixing).

One way to think of it is that it was a product that got too clever, and now people are figuring out a way to set that right and the market will soon disappear. If you were to follow this view, you would thin that ordinary credit traders (well, most credit traders work for large banks or hedge funds, so not sure this category exists) will stop trading CDSs and the market will die.

Another way to think about it is that these over-legalistic implications of CDSs are a way by the issuer of the debt to make money off all the side bets that happen on that debt. You can think about this in terms of horse racing.

Horse breeding is largely funded by revenues from bets. Every time there is a race, there is heavy betting (this is legal in most countries), and a part of the “rent” that the house collects from these bets is shared with the owners of the horses (in the form of prizes and participation fees). And this revenue stream (from side bets on which horse is better, essentially) completely funds horse rearing.

CDSs were a product invented to help holders of debt to transfer credit risk to other players who could hedge the risk better (by diversifying the risk, owning opposite exposures, etc.). However, over time they got so popular that on several debt instruments, the amount of CDSs outstanding is a large multiple of the total value of the debt itself.

This is a problem as we saw during the 2008 financial crisis, as this rapidly amplified the impacts of mortgage defaults. Moreover, the market in CDSs has no impact whatsoever on the companies that issued the debt  – they can see what the market thinks of their creditworthiness but have no way to profit from these side bets.

And that is where engineered defaults come in – they present a way for debt issuers to actually profit from all the side bets. By striking a deal with CDS owners, they are able to transfer some of the benefits of their own defaults to cheaper rates in the next round of funding. Even orphaning of debt and transferring between group companies are done in consultation with CDS holders – people the company ordinarily should have nothing to do with.

The market for CDS is very different from ordinary sports betting markets – there are no “unsophisticated players”, so it is unclear if anyone can be punished for match fixing. The best way to look at all the turmoil in the CDS market can thus be looked at in the same way as horse rearing – an activity being funded by “side bets”.

Housewife Careers

This is something I’ve been wanting to write about for a very long time, but have kept putting it off. The ultimate trigger for writing this is this article about women with children in Amazon asking for backup child care at work. Since this hits rather close home, this is a good enough trigger to write.

Quoting the article:

“Everyone wants to act really tough and pretend they don’t have human needs,” says Kristi Coulter, who worked in various roles at Amazon for almost 12 years and observed that many senior executives had stay-at-home wives.

(emphasis mine)

While this might be true of Amazon (though not necessarily for other large tech companies), it is true for other careers as well. The nature of the job means that it is impossible to function if you even have partial child-care responsibilities. And that implies that the only way you can do this job is if you have a spouse whose full time job is bringing up the kids.

Without loss of generality (considering that in most cases it’s the women who give up their careers for child-rearing), we can call these jobs “housewife jobs”.

Housewife jobs are jobs where you can do a good job if an only if you have a spouse who spends all her time taking care of the kids. 

The main feature (I would say it is a bug, but whatever) of such a job is usually long work hours that require you to “overlap both ways” – both leave home early in the morning and return late every night, implying that even if you have to drop your kid to day care, it is your spouse who has to do so. And as I’ve found from personal experience, it is simply not possible to work profitably when you have both child-dropping and child-picking-up duties on a single day (unless you have zero commute, like I’ve had for the last eight months).

Housewife jobs also involve lots of travel. Whether it is overnight or not doesn’t matter, since you are likely to be away early mornings and late evenings at least, and this means (once again) that the spouse has to pick up the slack.

Housewife jobs also involve a lot of pressure, which means that even when you are done with work and want to relax with the kids, you are unable to take your mind off work. So it turns out to be rather unprofitable time with the kids – so you might as well spend that working. Which again means the spouse picks up the slack.

Sometimes a job may not be inherently stressful or require long hours, but might be housewife because the company is led by a bunch of people with housewives (the article linked above claims this about Amazon). What this means is that when there is a sufficient number of (mostly) men in senior management who have housewives taking care of kids, their way of working percolates through the culture of the organisation.

These organisations are more likely to demand “facetime” (not the Apple variety). They are more likely to value input more than output (thus privileging fighter work?). And soon people without housewives get crowded out of such organisations, making it even more housewife organisations.

Finally, you may argue that I’ve used UK-style nurseries as the dominant child care mechanism in my post (these usually run 8-6), and that it might be possible to hedge the situations completely with 24/7 nannies or Singapore-style “helpers”. Now, even with full time child care, there are some emergencies that occur from time to time which require the presence of at least one parent. And it can’t be the same parent providing that presence all the time. So if one of the parents is in a “housewife job”, things don’t really work out.

I guess it is not hard to work out a list of jobs or sectors which are inherently “housewife”. Look at where people quit once they have kids. Look at where people quit once they get married. Look at jobs that are staffed by rolling legions of fresh graduates (if you don’t have a kid, you don’t need a housewife).

The scary realisation I’m coming to is that most jobs are housewife jobs, and it is really not easy being a DI(>=1)K household.

Liverpool

While I absolutely remain a fan of Liverpool Football Club, and had a fascinating tour of their facilities this morning, I’m not such a big fan of the city itself. Somehow overall the experience there (barring some taxi rides and the Anfield experience itself) was not particularly great.

For starters, it doesn’t help that the city has lousy weather. Being up north, in England and on the coast means there are strong winds, and it can be pretty bad when it rains. Then, when I got off the train station last night, the city seemed dead and the roads that I walked on until I found a taxi were deserted.

And this afternoon, after I had finished my stadium tour and went to the renowned Albert Docks, the experience there was similar as well. Rather dull and without too many people around. And once again the weather didn’t help matters.

And then there is the hotel I stayed in last night. The check in and check out were rather pleasant and I mostly got a good night’s sleep as well, but a former office building converted to a hotel can be a bit depressing. The room was rather small, with the bed stuck to two walls. And a part of it had been earmarked for the bathroom anyway. Even this morning when I got out of the hotel the area wasn’t really bustling (this was in central Liverpool).

And while I found the breakfast to be pretty good (I got a a “large English breakfast”), the service and decor of the restaurant wasn’t particularly appealing. And as I got out of the restaurant, I saw a “up for sale” board on the door!

Anyway, it’s just a few data points. However, in hindsight I feel less bad now about not booking my ticket to York yesterday itself, which would’ve cut my journey cost by 50%. Without a booked ticket, not finding the place particularly interesting meant I could quickly get to the station and take the next train onward.

So here I am, nearing York (I’m finishing this post now in a hurry since I should reach any time now, and I don’t want to scramble). The views on the journey have been rather stunning. The big breakfast meant that I didn’t need to have lunch today. And I had some beer and peanuts and cake on the train and am feeling happy about it now!

The only sore point is that soon after I had bought beer from the cart on the train, the conductor announced that the toilets on train aren’t working. In any case, York isn’t far away!

Cheers

This is Anfield

 

I had a massive fanboy time this morning, as I went on my long-awaited (nearly 14 years) pilgrimage to Anfield, home of the Liverpool Football Club. As I had mentioned in my post last night, this was the explicit purpose of my visit to Liverpool, and I had left home with only three bookings – train to Liverpool, hotel in Liverpool and the Anfield tour.

So after having polished off a “large Full English” (in hindsight, I’m thankful for that) at a local cafe close to my hotel, I took an Uber to Anfield. The driver was also a Liverpool fan and we spent time chatting about last afternoon’s game, when Liverpool played insipidly to draw across Stanley Park with Everton. I was in good time for the tour (that was to start at 11), and spent the time walking along the outside of the Main Stand.

There are benches dedicated to Liverpool’s greatest players of all time, and the floor is tiled with names of members (not all members I think – perhaps those that made contributions to rebuild the Main Stand 3 years ago). I paid my respects at the Hillsborough Memorial and walked back to the Kop end where the entrance to the Stadium Tour is situated.

The tour started on the sixth floor of the newly redeveloped Main Stand (if you’ve wondered why TV broadcasts of Liverpool games suddenly started showing a very high angle, this is the reason). Our guide Terry first took us to the hall where there were photos of “Liverpool’s six great managers”.

The choices were interesting – Shankly, Paisley, Fagan, Dalglish, Houllier and Benitez. As the Elo ratings show, these were all definitely managers who improved Liverpool, sometimes in a significant way (though the last two also let things slip considerably towards the end of their reigns.

I sensed some sort of discomfort in the group. Evidently, a majority were Liverpool fans, but talks about “the purpose of the club being to win trophies” and talking up of the number of trophies won so far brought up the painful reality that we’ve “AJMd” on a league, a europa league and a champions league in the last five years itself, and look on course to AJM the league once again. Nobody really wanted to point out that things aren’t going as well as we would like.

In any case, the tour moved on and our guide Terry was excellent, though sometimes he went back to familiar cliches. Describing the miracle of Istanbul, for example, he made the familiar joke of “Milan had Kaka, and we had Djimi Traore, and yet we managed to win”.

We moved on to a view of the pitch from the highest tier of the main stand, my first impression was that this is a rather “cosy” stadium. Now, the only other stadiums I’ve been to are the behemoths Camp Nou and Wembley, and in comparison to them, Anfield looked rather intimate. That also suggested why the crowd at Anfield is sometimes like “Liverpool’s 12th man”, as a poster outside the away dressing room claimed.

The small stadium means the crowd noise can reverberate easily around the stadium. The Anfield Road End is yet to be redeveloped, and once that happens the stadium will become “taller”, meaning the noise levels might get higher. Looking at the pitch from up the Main Stand gave me another regret – that I haven’t watched a game at Anfield (though I did watch Liverpool play at Wembley). Hopefully sometime in this lifetime I’ll fulfil that!

There were cutouts of various players placed near the dressing rooms. Salah’s was the most popular as everyone lined up to take a selfie with him. Rather than waiting there, I managed selfies with cutouts of all of Firmino, van Dijk and Alisson. The dressing rooms were impressive (especially the Home dressing room). I also found the differences between home and away dressing rooms interesting – the home room is soundproof while the away room isn’t. The home room has lighting control to adjust the lighting to the pitch. The away room has no such facilities. These are subtle differences we don’t appreciate as TV viewers, but can have a profound impact on the game.

And based on this, I don’t mind the draws at Manchester United and Everton that much!

 

You’ll Never Walk Alone

I first became a fan of Liverpool FC in April 2005, on the day of the first leg of their Champions League semifinal against Chelsea. While I was in London for a month and half after that, I never really executed on the pilgrimage to Anfield. Instead I went on trips around the country which my friends had planned.

For a long time, this was on my To-Do list. Yet, I continued to be lazy. I moved to England exactly two years ago, but had somehow kept putting off my trip to Liverpool. The initial plan had been to do it with family, carrying my daughter as she put her hands on the “this is anfield” signboard.

Finally, as it happens, I’ve made the trip just before we end our current stint in London and move back to India. And unlike that plan of that photo-op of my daughter with her hand on the “this is anfield” sign, I’ve come to Liverpool alone.

I don’t know the last time I had one an “unplanned trip”. This time I did some planning, though, but haven’t booked much. As things stand now, I’ve only booked my train to Liverpool (which I took this evening), my hotel for the night (where I’m writing this from) and the Anfield tour for tomorrow morning.

In my eagerness to get to the hotel after the train rolled in to Liverpool Lime Street at 10:20 PM tonight, I exited the station without bothering to see where the taxi rank was. And then google maps told me I could get a bus nearby, so I walked alone for a bit. There was a bunch of bus stops but it was unclear what bus I should take. So I walked on.

And presently an empty taxi came that way. And I hopped in. The taxi driver told me that my hotel is “one of the several old office complexes that have now become hotels” in Liverpool, “all thanks to the football”, he said. The room does look weird. It’s among the smallest hotel rooms I’ve stayed in, perhaps smaller than the one in Hong Kong.

I dont have the enthu to get up now, so here’s a photo of my room from my bed (that glass wall you see on the left is the bathroom). I trust what my taxi driver told me – I can fully imagine this little space having been a meeting room or office cabin once upon a time.

Anyways, off to bed now. Anfield beckons tomorrow morning! Never mind today’s derby result, and that we’re behind in the title race now.