I’d love your suggestions:

Tiny taxes on high-volume transactions raise a lot of money, but they also cost money to record, collect, and audit, which is why few jurisdictions have 0.25% sales taxes.

But the basic idea is sound: tax bad/useless things to avoid taxing good things¹. That’s why books and cigarettes tend to have different tax rates, it’s also a very good argument for trading payroll taxes for pollution taxes (I’m shocked there isn’t more support for “jobs not smokestacks”).

But sticking with the 1% vs 99% framework, I can think of two alternatives:

Alternative 1: A Time Tax

Low value-add high frequency trading like ticker tape trading (or front running) rely on timely execution of trades — value investing does not. To discourage the former without affecting the latter, just randomize all trades by 1-2 seconds (the exact values would depend on the exchange).

This isn’t exactly revolutionary, it’s only recently that sub-second trading by computers in the same building as the exchange has been the standard.

Within the 1%/99% framework, the 99% buys stocks through their 401ks and mutual funds, with a timeline of days or sometimes months, it’s a very privileged class of traders who can jump in to save tiny fractions of the price in fractions of seconds.

“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.” – Warren Buffett

Alternative 2: An information tax

A large amount of effort goes into preventing insider trading through insider trading windows and prosecutions — all to keep the appearance of a fair game for investors. But we don’t have to keep the game fair for financial firms, how much research does the 99% do before investing in your 401k? ²

The purpose of a stock market is to let businesses raise capital and the fact that it also tends to accurately those companies is a bit of a side effect — that some people can make money trying to predict those movements is entirely a side effect. Traders with insider information help price stocks more accurately and more quickly: but instead, the SEC expends a huge amount of the effort that the SEC expends³ to ensure that all investors get their information at the same time rather than whenever it reaches them organically mostly to preserve the idea that the stock market is a game of skill, not a game of chance.

It’s complicated, maybe impossible, to enforce insider trading laws, and the rule makers aren’t entirely on board with the idea in the first place. There’s a whole whack of compliance paperwork that comes with insiders legitimately trying to sell their shares too, not for malicious reasons, but rather because you generally don’t want to have your investments tied up in the company you work for ⁴ All compliance costs money and insider trading rules aren’t much help to people who invest in index funds — which should describe most of the 99%.

[Edit: While we're getting rid of SEC rules, Albert of continuations.com has a good point, let's also remove the quiet period for going public]

All the links to companies seem to have a target of “_blank” so hopefully that’s sufficient:


$("span a[target=_blank]")


Nope, it looks like there are other links as well. I could strip them out with a pile of regular expressions, but it seems that all the company names are bolded — not with a class but with inline styles. That’s a bit of a pain, since jQuery doesn’t let me use those in selectors, so we’ll need to filter the results:


$("span a[target=_blank]").filter(function() {
return $(this).css('font-weight') == 'bold';
}).each(function (index) { console.log(this.innerText) });


Bingo.

A simple select * from accounts where name in ("Abiquo","ActiveState","Actuate"... was enough to pull up a bunch of customers, New Relic for instance. And a bit more munching to normalize the names reveals a few more.

FEPServer is a quick and dirty project on App Engine that’ll throw a random or a specific error every N requests. It’s written in Python (although written might be too strong a word, there’s almost no code), source is up at github.com/eurica/FEPServer

If you’re using Gmail, I’m also a fan of Rapportive which adds some more useful information about each contact to the side bar (it overwrites the ads, which you’ve probably adblocked anyway). Boomerang for Gmail adds a much needed “Send later” option as well as reminding you when you expected a reply but didn’t receive one.

There’s no way to guarantee no-one will ever get your user table and paste it on the internet, but there’s a pretty easy way to detect it in a lot of cases. Create a fake honeypot email address (mine is honeypot@euri.ca¹) and place it somehwere in all your DBs and setting up a Google alert on it. This is a good idea², and it’s easy too:

First set up a Google Alert to for “honeypot@euri.ca”, All results, As-it-happens to be emailed to me. Since the honeypot address will never be leaked you won’t be overwhelmed with emails.

Second, register one of your testing users with that email. This has the added bonus of a lightweight sanity check that you aren’t leaking user information. For instance, if you’ve accidentally left the users/index method in your scaffolding, this may pick it up. Along those lines you may want to set up an alert on one of your testing passwords (I don’t but you may).

Thirdly, this is purely an additive measure, and should be used in addition to actually doing everything possible to secure your private data.

I’m told there are some blurry photos of the event [edit: thanks @shtistea!], but it was mostly a fun stream of consciousness recounting of the technical details of the hack and what I learnt about social media and my 15 minutes of fame. The group understood the tech part, and also tended to be the kind of people who play with things in a can-I-hack-this-to-do-this sort of way themselves.

Oh and a special thanks to tweetquoter

How would you start a Groupon competitor? It’s not a tech problem (which is why, I suspect that HackerNews hates them), it’s strictly a chicken and egg problem: acquiring deals and acquiring eyeballs.

Get deals first: Aggregate. It’s a hard problem to get at least one local interesting deal a day. So let Groupon and LivingSocial and your local competitors provide the initial content. Send out one email or having a landing page with all today’s local deals sorted best to worst. Now you can build traffic cheaper than Groupon because you offer Groupon++. Even if Groupon et al get all the revenue from all the deals on your homepage you have your chicken and you can start searching for your own eggs (deals) to add to the top of the list.

Who’s doing it already: Dealmap, Yipit, 8Coupons, Yahoo

Get eyeballs first: Use dead end media. Newspapers are still struggling to replace classified ads, they have huge fixed investments in advertising space, customer service and marketing. Take the existing readers and coupon clippers and offer them exclusive deals. Heck, use one of the white-labelled deal sites — it has never been a technology problem.

Who’s doing it already: Wag Jag, Sun Media just bought StealTheDeal

Start with a few chickens and a few eggs: Specialize. AppSumo is Groupon for SaaS, HumbleBundle is Groupon for games, deals.feld.com is Groupon for people who like Brad Feld.

To paraphrase Andrew a little “So why don’t you build one, tough guy?”[1] Automated aggregation doesn’t have any kind of moat (and isn’t really all that interesting) and working with newspapers is an uphill battle. If the New York Times called me up tomorrow and said “we’re betting the company on an elite, invitation only Groupon in posh metropolitan areas” I’m in, but trying to help the Boise Tribune save its bloated marketing department AND try out-execute Groupon is not an easy play.

I don’t think Groupon is unstoppable, what makes the content compelling is the discounts, and what makes the discounts compelling are the audience and both of those ingredients are commodities. There’s no reason not to subscribe to multiple coupon sites, and competition should erode margins. That’s how commodities work in a free market.

Groupon does have 3 advantages right now. They’re defining the game, they could be instantly and massively profitable tomorrow by stopping their ad-buys, concentrating only on their most profitable markets and gliding on the market share they have now. Instead, they’re choosing what the customer acquisition cost is for their competitors, and what the marginal deal available looks like.

They are also executing better than anyone else, that can’t be ignored. The most straightforward way to win a race is to run fastest. If Andrew Mason can reliably out-execute his competitors, he doesn’t need a moat.

Those are formidable advantages, but what might be driving their ridiculous meteroric valuation is that they may be the first company to actually understand small businesses and get them to trust technology. Across North America (never mind the world) small businesses have crappy webpages, schedule their shifts on paper, use POS systems which are P’sOS, operate poor online advertising plans and ignore their analytics. Groupon could buy or build a system for any or all of those systems and instantly place it in front of hundreds of thousands of trusting customers. (Or they could be planning something cooler.)

In short, anyone can start a Groupon, and that’s going to slaughter their margins within the next few years, but a few years is a long time for an agile company to transfer traction from an easy problem “deep discounts are popular” to a meaningful & sustainable problem, either small business POS/IT/analytics or the mystery box and they have the runway to do it.

Update: There’s a lot of good discussion out there, I recommend this parachuting company’s successful experience to see how it can really work, and this TechCrunch discussion of why Groupon is as much about cashflow as sales. -June 15th

[1] Andrew and I spoke about this for a few hours today, and he’s a firehose of energy and ideas. I kind of wish I had taken notes.

It’s still not on by default, you’ll have to add the following to your GA code:

_gaq.push(['_trackPageLoadTime']);


That’s cool, I’ll add it and play around with how it compares to calculating it myself. I could’ve sworn Clicky already had that, but I can’t find it so I must be confusing Clicky with Chartbeat

• gzip 96%
• deflate 93%
• sdch 22%

That’s quite an impressive showing for Google’s sdch which was only proposed in late 2008. It also drives home the point: enable GZip on the server, 96% of your visitors will get a better experience.

Again, here’s the raw data:

• gzip, deflate (479)
• gzip,deflate,sdch (197)
• gzip,deflate (151)
• [null] (29)
• gzip (25)
• identity (4)
• deflate, gzip, x-gzip, identity, *;q=0 (2)
• gzip, deflate, x-gzip, identity; q=0.9 (1)
• gzip, deflate, identity (1)
• gzip,deflate,bzip2 (1)

[the total count (890) doesn't match up with the accept-languages article since I'm de-duping differently, don't consider this to be super scientifically rigorous.]