Loans

How about being able to get loans from the Lindens? That would be nice...

A good thread to start. Do people think:

1. Linden should make loans to individuals directly. If so, what criteria could we use to make them (think of RL loan applications). What should happen to you if you default on a loan?


2. The loan business should emerge soley from users who are able to pile together lots of cash (as has happened to a limited extent today). What should happen to you if you default on a loan?

3. Features should be added allowing users to pool money and withdraw from it in some automated or vote-driven way (so you don't place control in an individual, as in #2). Prevailing rate of interest could be based on rate of default, for example, which would be some motivation to be trustworthy.

I think that this idea has an upside and a downside.

On the upside, people that would like to fund large projects would have the money for it, and all would be well and good.

Downside, what about when they have to pay it back. If we were running off a realistic Econ, system then it would be completely throw, because there is wealth coming out of no-where and when it comes time to pay. Chances are they won't have it, because they never did in the first place.

If this does get implimented criteria should be similar to as follows, ok well its just my suggestion:

1)Have a specific Project Proposal Laid out.
2)Limit Loans only to what will be needed for the project, with a cap at 50 or 60 thousand.
3)Have a certain pool of money set-up that can be used for loans, and once that pool is exhausted, you must wait for the other loans to be paid back.

These limitations would help with the problem that I stated but would not solve it. What would be the concequence for not paying back the loan on time? Repossesion? Also if interest is charged with the loans that pool that I metioned would grow over time, much like a real bank.

Well there is my 2 cents on the matter

I was toying with the idea of setting up a bank myself... However I wouldn't mind if the Lindens did it instead.

The major problem i see with this is still the lack of controls we have on other people, its been mentioned before that the Lindens want the world to become self regulated (to a certain extent). They need to give us the tools to do that.... Its the same with this loan issue, yeah we can loan money like in the real world but what can we do if they don't pay back? No courts to take people to, can't even go mafia style and kill them. WE need some more controls before we will see loans and such happen succesfully.

JV

On one hand, it would be very good to be able to establish accounts that exist seperately from a user - for business accounts or banking funds, investment funds, etc.

On the other hand, at the pressent time, all enforcment power rests in the hands of the Lindens. We have no independent judiciary or law enforcement. So, we can't sanction anyone for any fiscal or moral misbehavior. We could loan the money, but then we just wish or complain to the Lindens.

Hmmmm.

Just thinking outloud.

maybe we need a new rating category: credit

LOL,

I think that is the funniest thing i've heard or seen, well since last night when a naked guy was dancing on a huge leapord print chair at the amphitheatre.

Though not a bad idea, still a little risky without ways to forcably collect debt.

JV

Who needs a loan when you can apply for a grant

Oh i'd take one, i just hate taking the time to apply for stuff, i put off applying for college until a month or two before it started lol.

JV