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Matt Davis — Need2Know Chedditor

Table of Contents

• Can NYC Finally Cool Its Subways?

• Amazon Will Pass on Some of $600M in Tariff Refund …

• Car Insurance Firms Deny 45% of Accident Claims

• American Makes Upgrades Tougher to Land

• Mark Zuckerberg Wrote a Long Essay. LOL.

• Poll of the Day: Meta-Narratives

What’s the Stock Market Up To, Eh?

$SPX ( ▼ 0.06% )  $DJI ( ▼ 0.11% )  $NDX ( ▲ 1.59% )  

Companies Mentioned in Today’s Newsletter

$AMZN ( ▲ 1.32% )  $ALL ( ▲ 1.0% )  $AAL ( ▼ 5.9% )  $META ( ▲ 0.48% )  $OPEAZZX ( ▲ 0.85% )  $ANTHZZX ( ▲ 0.68% )

Can NYC Finally Cool Its Subways?

Ah, summer in New York. The smell of hot garbage, the gentle hum of AC units dripping mystery water on your head, and of course, the subterranean kiln we call the MTA.

Every weekday, roughly 4 million brave souls descend into the city’s underground sauna. For over a century, the city's premier engineering strategy for cooling its platforms was basically "trains move fast, hopefully pushing the hot air away." Yes, the "piston effect.”

Then came Jack Klein, a computer science grad who decided he didn't want to melt at 14th Street station, and started a DIY sensor network. His readings were brutal: "Right now the temperature is around 94 degrees Fahrenheit, the humidity is 64%, but it feels around 115 degrees," he told us recently. Standing on the 4-5-6 platform, Klein summarized the local atmosphere perfectly: "The air feels bad, super hot."

So, what is the MTA doing with its $19.9 billion in annual revenue? Well, they are testing space-age geothermal loops at East Broadway. Incredible, right? Yet, when Klein offered his independent sensor data to the MTA Climate Resiliency Team, they politely told him "they didn't have the capacity to collaborate at this time." 

At scale, it seems, cooling the subway isn't a tech problem; it's a prioritization problem. Until the MTA decides that not boiling its commuters is a priority, we'll just have to rely on Klein’s other low-tech innovation: Passing out free five-gallon jugs of water on the platform.

Quote of the Day

Amazon Will Pass on Some of $600M in Tariff Refunds

Great news, shoppers! Amazon $AMZN ( ▲ 1.32% ) is getting a massive $600 million tax refund from the federal government. And because they are just so incredibly generous, they have pledged to return... well, "some" of those profits back to you.

The windfall comes courtesy of a Supreme Court ruling earlier this year that struck down the Trump administration's import tariffs. Naturally, Amazon was first in line to participate in the government's giant payout. Chief Financial Officer Brian Olsavsky happily confirmed that the retail giant is “participating in the tariff refund process” and pocketed the $600 million in its second financial quarter.

But don't go planning your early retirement just yet. Olsavsky assured investors that during the trade war, Amazon “largely absorbed these costs rather than pass them on to customers.” Therefore, the company has only “identified a limited set of circumstances” where everyday shoppers actually felt the pinch. But hey, if you are one of the chosen few, Amazon promises, “When we receive those refunds, we will proactively contact affected customers and automatically issue refunds to them.” 

I can only assume this will arrive as a massive $0.47 promotional credit.

Meanwhile, Donald Trump is watching this refund bonanza like a hawk. He warned on CNBC that he would "remember" any corporations that didn't claim their share of the federal payout. “If they don’t do that, I will remember them, I’ll tell you that,” Trump grumbled. “Because I’m looking to make this country strong. Supreme Court could have helped us.”

I’m going to keep checking my inbox for the good news.

Car Insurance Firms Deny 45% of Accident Claims

According to a Wall Street Journal analysis of regulatory filings, auto insurers failed to pay out on 45% of auto liability and medical claims they resolved last year. Yes, you read that right. Your mandatory monthly driving subscription now comes with a near flip-of-a-coin chance of actual insurance coverage.

And I was just delighted to see that my car insurer, Liberty Mutual, now refuses 54% of claims.

Take Christopher Benton, who got into what he called a "little bumper accident." He assumed his Allstate-owned $ALL ( ▲ 1.0% ) policy would handle it. Instead, they denied the claim because he hadn't disclosed his unlicensed 15-year-old son, who wasn't even in the car at the time. As Benton noted, “That’s why you pay for insurance. It doesn’t seem right they can just not pay.” His lawyer, Justin King, was even more blunt, arguing the process was “deliberately designed this way, so that they have this ace card in their back pocket if there’s an accident.”

Jerks.

But don't worry, the insurance industry has some highly logical excuses for this kind of behavior. Sean Kevelighan, CEO of the Insurance Information Institute, blames greedy lawyers, grumbling that “people are going to litigation as a first step, instead of a last resort.” John Morgan, founder of law firm Morgan & Morgan, retorted, “Litigation is increasing because more claims are being denied — not the other way around.”

Meanwhile, consumer advocates point straight to the bottom line. Douglas Heller of the Consumer Federation of America notes that “the industry uses claim lowballing and denials to wring extra profit.” But Allstate executive Jess Merten insists it's all for our own good: “The better we are in claims, the less that we have to charge customers.” 

Ah, of course! They are helping us save money by simply refusing to give us any of it.

There are notable differences between different insurers, incidentally, so it’s worth checking out the data.

Song of the Day: The Rolling Stones, ‘Mr. Charm’

Here’s a standout, danceable rock track from the new Rolling Stones album Foreign Tongues. Critics praise its infectious four-on-the-floor groove, sharp guitar work, and Mick Jagger's cheeky lyrical jab at billionaire "mad mogul Mr. Musk." Produced by Andrew Watt, it balances a modern, lean rhythm with classic rock swagger. Here’s Jagger’s tweet featuring the song, and him dancing in a nightclub at, what, 83 years old…

American Makes Upgrades Tougher to Land

If you are an elite frequent flyer with American Airlines $AAL ( ▼ 5.9% ) , go ahead and pat yourself on the back. You have spent thousands of dollars and countless hours breathing recycled cabin air to earn those precious loyalty points. Your reward? A front-row ticket to the upgrade lottery — where the grand prize is now... a middle seat.

Starting August 25, American is cutting the cord on complimentary coach-to-business class leaps on its most desirable transcontinental and Hawaiian routes, including Boston to San Francisco, JFK to LA, and Chicago to Honolulu. Instead of lounging in a roomy business class seat, coach-buying elite travelers are being graciously bumped to the Premium Economy waitlist.

Why this sudden outbreak of corporate stinginess? Because airlines have realized that customers are actually willing to pay real cash for roomier seats. Giving away luxury seats to loyalists when you could sell them is, ergo, bad for business.

But don't worry, the airline’s corporate PR machine is here to reassure you. “We’ll do our best to accommodate your seating preferences, though options may vary depending on aircraft type and availability,” American said. Translation: Don’t get your hopes up. And if you do end up in Premium Economy? Brace yourself, because, “In Premium Economy, some aircraft types include middle seats, so you may be assigned one if other seating options aren’t available.”

Yes. You could climb the elite status ladder only to find yourself wedged between two strangers, fighting for a single shared armrest. Elite!

Mark Zuckerberg Wrote a Long Essay. LOL.

Ah, “man of the people” tech billionaire Mark Zuckerberg $META ( ▲ 0.48% ) . He’s graciously written a 6,500-word manifesto to explain why spending $145 billion on data centers this year is actually a massive victory for you.

Zuckerberg cast Meta’s open AI models as the heroic defenders of humanity against closed rivals like OpenAI $OPEAZZX ( ▲ 0.85% ) and Anthropic $ANTHZZX ( ▲ 0.68% ) . In Zuck’s eyes, other labs are basically building tools for corporate and government overlords. “Most other labs are focused on building AI for companies, governments, or other institutions,” Zuckerberg warned. “So if those labs lead, then the balance of power will favor larger institutions over individuals.”

How does he plan to stop this dystopian future? By giving away Meta's new model, Muse Glimmer, for free. Good job, because nobody would want it otherwise, I’m sure.

Zuckerberg argues that keeping AI code locked up is the real hazard. “The notion that AI is so dangerous that the only safe path is an extreme concentration of power seems inherently problematic,” he wrote.

Oddly, he had no problem monopolizing social networks for a generation. But still.

Saving humanity is a costly business. Meta’s massive AI infrastructure spending recently tanked its free cash flow by 91%, leaving investors rather, let’s say…impatient:

Way to seize control of the narrative, Mark-o.

Free Yourself From Advertising Forever!

Should You Check Your 401(k) Today?

👍️ 

Yes.

Poll of the Day: Meta-Narratives

Poll of the Day: The Whopper Decisively Wins!

We asked: What would you prefer to eat?

You answered:

🟩🟩🟩🟩🟩🟩 A Whopper (247)
🟨🟨⬜️⬜️⬜️⬜️ A Big Mac (91)
338 Votes via @beehiiv polls

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