The Great SL Recession of '04?

Lindens have allowed $124,457,884 Linden Dollars into SL and its causing massive inflation of the currency. LL needs to do the following to remedy the problem.


1) Stop all Stipends and Dwell payments.
2) Halt all New Land Auctions - Only Trade Existing Land
3) Destory all L$ dollars received up to L$75,000,000.

I'm selling all my Linden Dollars and and repurchasing them once this slide has stabilized. That will allow me to repurchase more Linden Dollars at a lower cost.

Back in the evil land baron days, I always supported their right to their thing. Well, at least never badmouthed anyone about it. It was a free economy, so I figured the market will dictate the prices. Now it's still a free economy, and the market is still dictating the prices. Lordfly and Siggy are right, giving us more sims is good for the whole. Breaking scripts is bad for the whole. If LL makes some new tool that makes it easier for non-builders to build, I might lose business from building. So I'll find something else to add value.

If land is too cheap for you to make money, find something else that pays better. If I owned typewriter repair company, I'd seriously consider diversifying.

I'm a financial moron, but aren't you supposed to buy low and sell high?

You can also 'average-down' if you think the bottom is near. The idea being that the aggregate effect of purchasing in increments as it declines will give you an 'average' price point to work with as you sell (hopefully) higher. It can also be a double-edged sword as well.

Just depends.

Correct. Buy Low, Sell High. The Bottom is falling out of the LD. As such I'm selling now, waiting for the LD to fall and then bottom out. Once that happens, I'll buy back in.

Example:
-----------
L$1000 @ US$4.00 - Today
L$1000 @ US$2.00 - Next Month


Now I can double my LDs next month with the same amount of cash. So sell now, wait till the LD reaches rock-bottom and level's out, then buy back in and wait for the LD to rise.

The LD is falling like a rock and I'm getting my investment out now and buying back in once it settles down. Its fallen back to June '04 levels. This was want the exchange was L$250=US$1.



Today's average: $4.0494
Best selling rate: 256 / $
Best buying rate: 250 / $

Makes sense.

Right now it's dropping so fast it seems like panic selling.

I agree.. Its a panic selloff and not many buyers.. Which only makes it worse since that adds to the fear that you might get stuck with Linden Dollars and unable to recoup your US$ investment. I'm gonna hold cash on the sidelines until the currency stablizes.

I love Virtual Economies..

There are no problems except seeing problems where there are none.

Its called selling short, and its a way to make a buck in a declining market. You're still buying low and selling high, its just that you're doing the selling before the buying. It, of course, assumes you have some L$ to sell.

- Ace

There is a problem. The valuation of the Linden Dollar has fallen by almost 50% in the last month. I'd call that a problem.

Ain't no doubt about it... is a full-scale panic.

But the market will find its bottom, and then the selling will stop.

Whoever had the US$3000 at $3.20 pulled back all their order too. There are a bunch of US$ on the sidelines, waiting for this to play itself out.

- Ace

So yeah wtf happened between yesterday and today? LOL. Last I checked, yes GOM was low compared to what it's been, but steady. I check today and it's taken a nosedive. Someone sold alot of money and didn't care for how much. Or several people sold and didn't care for how much. Now it's down to what $4.00? Haha we are almost to where it was when I first heard about GOM. Yes this is wonderful news for those who make some or all of their living from SL. Wee!

This is what I was afraid of... No more cool-ass Torrid clothes if this keeps up.

I call it a correction in a game economy. A dash of realism in your bourbon?

just for the record, i'm still hollering "free market - this is a free market".

and also, for all the players who had their hands over their ears... supply vs demand.

edit:
a good land baron business model accounts for a devaluation of the land. ie: buy buy buy

....and don't forget how talking up a panic becomes a self-fulfilling prophecy. Perhaps the market is responding to all the panic threads?

Surreal

alby, you sound like a professional basher on a stock market forum. you're not getting my L$ on the cheap, you sly dog!

With Philip positing the most recent economic stats here, I think we can answer the question of whether we've entered "The Great SL Recession of '04", which was the question that started this thread.

Let's see... land prices have actually been pretty stable since the beginning of September. In September, the median price was L$5.12/m2, while for the most recent week shown, it was L$5.26.

Since July, object sales have nearly doubled. Since July, gifts have nearly doubled. Since July, payments have more than doubled (although this stat gets skewed I think, since all L$ going in/out of GOM and/or IGE are listed as payments).

And I haven't noticed any serious inflation going on, in terms of the prices of goods in SL, so all of this increase reflects a robust and growing economy.

Reports of the sky falling are definitely premature.

- Ace

What goes down must come back up...

I dunno if anyone else has realized that a lower value of the $L and of land could make for an oppertune time for new people to get into business and established businesspeople to buy new assets.

*keeps working on furiously saving her L$ and working on content for her first store in the hopes she might get into business soon enough*

Edit: And I was writing this post before Ace made the post above, so I reserve the right to eat my words if I'm mistaken.

Yep and Alby you've been sounding the alarm-of-harm-O-doomy-gloomy-whatIf-isms for months.

And the SL sun still rises, still sets and the moon is a beautiful as ever.

And as Ace's said here, "Reports of the sky falling are definitely premature."

, if I can't sell things i can't pay my land tier, if I can't pay my land tier I can't play sl, if enough people have the same problem ll looses revenue, development, and diversity, if ll looses all that eventually it will fail. if it fails what are you gonna do with all your spare time?

Hmm dash of realism in my bourbon lol. Well, I wasn't specifically speaking about myself when it comes to relying on income. I have never counted on anything I make from SL to keep my RL up. I'm well aware that it's not stable enough to be a full time income unless of course you work constantly and really push, but still I don't trust it. I was making clothing long before we could sell our L$ and I"ll continue to do so.

And I wasn't intending my comment for you, Torrid. Although I would be most happy to share a bottle of good bourbon with you.