Nice one. I always found password managers a bit annoying to use, so this is a great alternative
This:
'facebook' + 'mypassword'
'twitter' + 'mypassword'
'foursquare' + 'mypassword'
Password manager with unique passwords: 'mSX32ZyKZXptY3E'
'33RiKbc3n6sA6IY'
'4kGzFtWDd0rnti6'
All I have to do is figure out what you named the site that I compromised, then do exactly what I'd usually do to recover your password, and, voila, I can now access all sites you use it for. Compare this to the password manager example where each password has been generated at random--one password communicates no information whatsoever about the other.If it gives you 'aJ2Y64f' and 'lLv8PV2S' and you decide to make those 'aJ2Y64fa' and 'lLv8PV2Sl' all of a sudden the ability to work backwards is lost, no?
The best solution is randomness -- that's why secure random number generators are so fundamentally important in cryptography.