Few devices know more personal details about people than the smartphones in their pockets: phone numbers, current location, often the owner's real name—even a unique ID number that can never be changed or turned off.
These phones don't keep secrets. They are sharing this personal data widely and regularly, a Wall Street Journal investigation has found.
The overwhelming cultural consensus of the post-WWII generation was that if you are middle-class, then you simply must own your own home and your children must go to college. Out of that cultural consensus emerged a complex system of tax breaks and special lending deals designed to make sure that the number of Americans who bought houses and bachelor's degrees was as high as possible–or maybe more so.
Many people now understand that this system of tax-and-lend has created a multigenerational housing bubble. But only a few have noticed that a very similar tax-and-lend system has also created a multi-generational higher education bubble.
Read rest of article…. Phi Beta Iota: There is good news. The smartest of the smart have been dropping out of high school, not just college, and then learning what they need to learn online and through hands-on experience. Like most bubbles, including not just the housing mortgage bubble but also the DoD acquisition bubble, the DoD private military contractor bubble, and so on, this bubble rests on fraud being permitted–a lack of accountability for outcomes. In today's world, with transparency emergent and soon rampant, accountability is going to be a fact of life. That is a good thing.
Microsoft's Cracked Windows: How The World's Technology Juggernaut Lost Its Buzz And Became The ‘Underdog'
EXTRACT: Its stranglehold on the desktop, while hugely profitable, helped turn Microsoft into an out-of-shape competitor focused on defending turf rather than scoring new hits. In seeking to maintain its dominance on the desktop, it failed to anticipate and plan for the spread of computing to mobile phones, handheld computers, the cloud, and Web-based services delivered by companies such as Google. Now, people can write documents, run spreadsheets and browse the Web without indulging any Microsoft software, steering right around the software giant.
EXTRACT: “It has an executive team that had not truly lived in a world of competition for perhaps a decade, and its performance in the years between 2000 and 2010 have showed this,” says George Colony, CEO and chairman of Forrester Research, a technology and market research firm. “Essentially, the company had no competition for a decade and so it became out of shape and not ready to truly compete.”
EXTRACT: In an op-ed in the New York Times published earlier this year, a former Microsoft vice-president, Dick Brass described the company as “a dysfunctional corporate culture in which the big established groups are allowed to prey upon emerging teams, belittle their efforts, compete unfairly against them for resources, and over time hector them out of existence.”
EXTRACT: “Apple builds fanatics,” says MIT's Anderson. “Microsoft builds people who are sullen, but not mutinous. Their DNA is large organizations, operating systems, and applications. Their DNA doesn't understand design and the consumer mind.”
EXTRACT: The Pew Research Center's 2010 Mobile Access survey found that 40% of adults in the U.S. now use their mobile phone to go online, compose email, or instant message–a number that will almost certainly swell. “Phones are do or die for Microsoft,” says Foley.
EXTRACT: The only certainty is this: Microsoft will be around in a major way if for no other reason than the dollars at play. “They have more money than God,” says MIT's Anderson
Not many know that GroupOn, Andrew Mason‘s initiative funded by Eric Lefkofsky, started as Policy Tree “Taking People Out of Politics”. Citizens were not interested in Policy Tree back then for two reasons: the outrage at mortgage fraud, Wall Street derivatives fraud, and Federal Reserve fraud had not peaked yet, and the power of GroupOn to move markets and nations had not been demonstrated. Now that GroupOn has turned down Google's offer of six billion, there is no doubt.
Put simply, GroupOn now has more power than George Soros, to take one example. GroupOn can:
1) Publish true costs for any product or service that is seriously harmful to all of us, and kill it.
2) Publicize a product or service that is good for the community, and make it a standard.
4) Organize citizens to do participatory legislation and participatory policy and participatory budgeting and participatory regulatory and propriety oversight in relation to specific issue areas, zip codes, countries, or states, and empower them as a group that cannot be ignored.
GroupOn has done what all others have failed to do: harnessed citizens in the aggregate. They have just begun. When combined with the emergence of digital natives as a political force whose outrage is now maturing (see Jon Lebkowsky's “The Kids Are All Right“), GroupOn is the game changer–not MoveOn.org, not No Labels, not Americans Elect, not IndependentVoting.org–all “old” models dominated by apparatchicks and not at all open to the collective. GroupOn. As in Group ON, dude!
Some things sell for not much more than they cost to make. Things like steel.
Others? They sell for high multiples of cost. Spa services, fancy ties, long haul airplane tickets, coaching, books–these are things that might cost a bunch to set up, but once the factory is rolling, the marginal cost of one more unit is really low. The challenge, then, is to find a way to get new customers without alienating the folks that have paid full price. Even better, to turn those new trial customers into loyal customers.
One of the challenges of selling to new customers cheap is that you might end up with a price shopper, someone who is always cheap, someone who will never convert into the kind of customer your high margin business needs to survive.
Priceline was a pioneer in figuring out how to isolate one customer type from another. The reason the original Priceline was so incredibly difficult to use (with blind reverse auctions, etc.) was that they wanted it that way. Anyone who was willing to through that hassle and anxiety to save $100 bucks for a ticket on Delta was clearly not someone Delta was going to have an easy time selling a regular ticket to. In other words, Jay Walker had figured out how to create a second type of air travel. One for cheapskates. The alternative to Priceline was a bus ticket or no travel at all… And Delta was fine with offloading excess seats to them, because they didn't have to worry about alienating their core customer.
Groupon is a very different thing. Here, it's not a hassle, it's the fun factor. Buying this way is exciting, you never know what's next, you do it with friends, the copy is funny, it's an adventure. As a result, many Groupon customers in fact do convert to becoming long time patrons of the place they tried, because they're not inherently cheap shoppers. When they're on Groupon they're hunting for fun. But if you offer an astonishing product and great service after they try you, they may convert into shopping with you for the long haul, not because you're a Groupon replacement, but because you bring them more than the alternatives.
And the magic basket? Tim Ferriss just finished offering more than $1600 worth of high-margin items in a basket to people who bought 30 copies of his new book. The marketing partners get trial among a group of people who are each paying more than the cost of a single item in the basket, these customers are proving they're not among the ultra-cheap. And the products are quasi-aligned, appealing to the same sort of consumer. Is there a cheaper way for one of these companies to reach this precise person? I'm not sure there is.
Imagine taking this even further and leaving out the book part. A basket of aligned items, all high margin, none from the market dominator, each holding out the possibility of future business… You could do this with an 8 pack of computer games or phone apps, or drink coupons from a dozen bars in the same town, or even clothing for guys size 38. Alex has experimented with this at Swagapalooza. I'm betting that there's quite a lot to be done in becoming this market creator/differentiator/middleman.
What's missing so far is an intelligent way to get permission, to follow up, to further organize those that do a trial and teach them and connect them so that they see a further incentive in sticking with the thing they just tried.
What's also missing is a willingness on the part of high-margin marketers to use their products and these sort of interactions as a replacement for the unmeasurable and largely ineffective lifestyle advertising they use now.
The net, once again, is making it easier to find and organize tribes of people, even for short durations. When you intersect these aligned groups with high-margin products, you can create fascinating commerce opportunities.
On the third Wednesday of every month, the nine members of an elite Wall Street society gather in Midtown Manhattan.
The men share a common goal: to protect the interests of big banks in the vast market for derivatives, one of the most profitable — and controversial — fields in finance. They also share a common secret: The details of their meetings, even their identities, have been strictly confidential.
Drawn from giants like JPMorgan Chase, Goldman Sachs and Morgan Stanley, the bankers form a powerful committee that helps oversee trading in derivatives, instruments which, like insurance, are used to hedge risk.
In theory, this group exists to safeguard the integrity of the multitrillion-dollar market. In practice, it also defends the dominance of the big banks.
The banks in this group, which is affiliated with a new derivatives clearinghouse, have fought to block other banks from entering the market, and they are also trying to thwart efforts to make full information on prices and fees freely available.
Phi Beta Iota: Derivatives are legalized financial crime, and a major reason why these criminal assets inflated in value seventeen times while asset-based values only went up five times during the same period addressed by William Greider in his latest book, Come Home America: The Rise and Fall (and Redeeming Promise) of Our Country. Any government that permits derivatives trading is itself complicit in this crime against humanity.
What if the greatest scam ever perpetrated was blatantly exposed, and the US media didn’t cover it? Does that mean the scam could keep going? That’s what we are about to find out.
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The Fed doled out $12.3 trillion in near-zero interest loans, using the American people as collateral, demanding nothing in return, other than a bunch of toxic assets in some cases. They only gave this money to a select group of insiders, at a time when very few had any money because all these same insiders and speculators crashed the system.Do you get that? The very people most responsible for crashing the system, were then rewarded with trillions of our dollars. This gave that select group of insiders unlimited power to seize control of assets and have unprecedented leverage over almost everything within their economies – crony capitalism on steroids.
