Why does the $L value keeps going down??

Why does it keep going down? its dropping dropping and dropping!

I don't know but I have a lot of them, I don't like hearing about how low they are. Please advise me when they get over 4, then I should sell.

interesting theory

amount of sl financial 'analysts' continued whining < the speed the linden exchange rate drops

this theory being proven currently on the land and economy forum

Hasn't it been between L$275 and $285 for a good 2 months now? That's pretty stable. L$250 days are gone since land isn't as rare any more and because of how much you can get through having a premium account.

But I guess a better answer would be, "Because Linden Lab has not yet hired freebie selling Jamie Bergman, SL's top economic mind."

Regards,

-Flip

actually it went up for a while.

Moving to Land and the Economy.

Beause the socialist around here won't give up their stipends.

There are some who benefit from the drop in value of the L$, and it is fairly easy to manipulate.

I think it is because people want to sell there L quick, and just don't understand how it works..

That if you put it in the lowest ranking with everyone else, you sell yours with them..so as long as lowest is selling, you are selling..

They think they have to be lowest to sell quick, so they put it it lower, then someone that wanted to sell quick sees that, and move lower, etc...etc..

But that is just what I think.

Hi there,

Yes, that is a good question. Why does the L keep losing value against the USD$? I am an economist currently in grad school. See after Linden Labs took over the L, they decided to add more money to the total money supply each week in the form of stipends. The increase in the money supply each week lessens the value of the L which is already in circulation. It also increases the velocity of the money. It is all supply and demand dynamics. In real life, here in the US our money supply is held constant by the fed. They do not print more dollars unless they want to add more money to the money supply and cause inflation, which in turn puts people to work and lowers the inters rates. Keynesian Theory really.

Here in SL, Linden Labs "prints" and adds more money to the money supply each week on Tuesday and only a little bit of this money is taken back in the forms of upload fees, etc. Every time more money is added to the money supply, the L will lose a little value.

The problem is found in many MMORPGs like EQ and UO. Because you can simply "farm" more and more gold by killing and looting monster, eventually there is so much gold in the world, no one even wants it anymore. That's why you'll find black sandals selling for 20 million gold in UO these days.

Anyway, I am opening a bank named SL Bank in another week or so. Look us up if you are bored. We offer a really good interest rate and little to no risk on your investment. We invest your money in the US dollar and other investments outside as well as inside of SL to pay for the interest rate.

Hope this helped,

Hey,

And the vast land expansions and firstland being given out at 512L, doesn't help any. Etc. etc.

Not to say your wrong or anything, I just would like to point out that I spent probably over 2000L is money sinks this week alone. Some of top classified ads run well into the 10Ks. I can upload 100Ls worth of stuff in a night easily. I wonder what the average amount a player spends on money sinks is? This would be interesting. Does anyone have any clue?

Wonderful, another voice of reason emerges....

Hey Jonas, your Stipends are in trouble dude. Enjoy
them while they last...

I don't know, but I do know that I spent more than my stipend this month on classifieds and uploads. And far more than I spent in-world, I bought nothing for myself this month. It'd be good to know how much does go out in sinks.

Knowing how much goes out in sinks would be interesting to know. Maybe they should make it public? The more info we have, the more sound our economy will be.

Well stipends have been around since I've been here - since 1.0 - thats long before GOM and IGE started trading let alone since LL started Lindex....

Also it's interesting to note that they also decided to LOWER the amount given to players for stipends (and by no insignificant amount) as well as take away things like events bonuses altogether.

Not till the 'voices of reason' learn to base theories on facts.

So for a while at least, I think it's pretty safe.

I agree as the L has held steady the last month at least (range of 270 to 280). The last day or two it has creeped up a point or two, but no reason to declare an end to stipends. If that were to happen, I'm sure that would only cause a backlash of major proportions and not fix any issues if there really was any.

YOu are living in the here and now with no logic that
can be applied to the long term trend..

Back in Oct'05 the L$ was US$4.00=L$1000. Now its
down to US$3.57=L$1000. And it continues to decline.
Will be you say the same thing when its US$3.34=L$1000?

Ever hear this saying?


A frog can be boiled alive if the water is heated slowly enough.
If a frog is placed in boiling water, it will jump out,
but if it is placed in cold water that is slowly heated,
it will never jump out and be boiled alive..

Translation: The L$ will decline slowly overtime. If it dropped
to US$2.00=L$1000 overnight, panic would grip the markets and
everybody would be running for the doors. But a few Linden Dollars
down per month and after 6-months, 12-months, etc you will see
dramatic declines in the valuation..

Time to wake up and smell that Stipends are bad for your health.

It still is not a problem to me now or in the future!

My day job is with the best Firm in the world! This is only a hobby to me

Stipends are good, after all, I pay for it. If you need proof:



taken and other data editted from list of membership pricing and benefits.

The stipend is clearly spelled out IN THE PREMIUM PACKAGE.

The stipends encourage spending. The stipends SUPPORT businesses.

The stipends are good, a fact which some delusionals refuse to see.

Some people have posited that stipends are being farmed. Basic accounts only get paid if they actually log on. Maybe we should require a minimum level of activity even for premium accounts? It's still not a lot of work to log on your alt once a week but it's certainly more than doing it once a year or whenever they want to cash out their linden bucks.
*helpless shrug*

Maybe L$10 for everyone hour logged in up to L$100? I wonder if that would decrease or increase the overall pool of stipends being given out for basic accounts. Oh wait, bad idea, could be gamed; we'd have even more zombies than with camping chairs!

Regards,

-Flip

Why should we the paying has to log on? Thank Jesus my agreement is with Linden Labs and not others! I am not obliged to other residents when it comes to money Matters!



The falling value of the Linden has little effect on me. If you need to earn more.Lindens to pay your expensive tier, it is your problem and not mine! I pay my tier the old fashion way with American Dollars!

The activity metric wouldn't have to be entirely temporal. Linden has statistics on the average amount of objects, scripts, whatever people are creating.
If we reward people by a more complex, composite measure of productivity, distributing the reward along a gaussian curve, people who don't need stipends would not get them, inactive accounts would not sit and milk money, and normal players would remain unaffected, or even experience an improvement.
It's like science, just find the right model to fit the existing world-data, tweak the gaussian, if a pure gaussian won't do, then use some other curve or some other type of function.
Just saying it's not impossible, and there's better ways to go about it than a flat fee for everyone