L$ Hits New Low --- L$305 / $1 Usd!

Of course, there is no problem according to all the socialist/communist osteriches we have in this game.

ANYONE CAN SEE THERE IS A PROBLEM, HOUSTON!!!!!!!

Philip, Please do something!!!

Someone's already snapped most of it up, because it wouldn't give me $10 at 305.

Lewis

Still, this is just an indicator of a larger problem... that the L$ continues to plunge

...Panic selling due to the uncertainty of the A$ announcement by Anshe.

Expect wild price fluctuations to continue until a confidence level is restored within the overall scope of the economic situation as it stands now with the SL economy.

Go read Atlas Shrugged and then stop asking other people to solve your economic problems for you.

note: the author of this post thinks that Ayn Rand was an overly verbose cartoonist whose alleged economic "theories" were wildly invalid, but I thought they made a lot of sense for about a week when I was 15, so they are superfically appealing in much the same way that wax fruit can be.

Why won't Philip do something? I mean, he's got to realize that these wild devaluations are terrible for planning / undertaking projects in SL. And once people get in "wait and see" mode, its tough to bring them out of it.

For the sake of SL, we need some clear direction now.

Philip is the only one with the power. We are but sheep left to the wolves without a shepherd.

Or maybe some economics student is writing his thesis.

I tried...

This question has gone unanswered for 10 days so far. Not even the "I'll forward this on" brush-off.

Don't panic Jamie

Astute business people garner hefty sums by taking advantage of situations such as these.

If you truly believe in Governor Linden and LL, and in their assertion and goal to maintain the linden at L$250/$1.00, then you would be a buyer in this situation, and a seller when the linden again settles at L$250/$1.00.

There is a silver lining somewhere in everything we do...

We just have to be wired in such a way, to be able to find it

Oh I quite agree, but how could they ever get the L$ back to their target rate? I'm beginning to think that they might just let the rate float and say "we now have a target of L$350 per $1 USD".

Possibly, but unlikely.

A more likely scenario is that Vasudha had for some time now recommended a monetary policy change to Governor Linden and he has been dragging his feet, contemplating the ramifications of the proposed change.

However now, he may not have the luxury of time, and may be forced to act in a more timely manner.

It is not unlike the GOM situation, in as far as LL already had the LindeX ready to go but were dragging their feet until Ricky unexpectedly shut GOM down. Note that within days, the Lindex was up and running.

Expect changes very soon.

Note that if the rate finishes the day at an average above L$302.11/US$, we'll be at an all time high.

Previous high: $3.3101/L$1k (L$302.10/US$) on September 27th, 2005.

L$/US$ Chart (I'll update it when Lawrence posts some updated market data)

I am not flaming, but it sure seems strange to me that the fast sell of lindens in extremely large amounts has to be coming from someone who has a LOT of Money....then someone comes up with a plan to replace the lindens with something else. Could it be that they are one in the same, causing the devaluation of the linden to make a deeper move into SL......

Yes, this is probably just panic since Anshe's announcement that she will soon be selling A$$

Someone on another thread posted a reasonable explanation of why a big seller would dump a lot at once below market value when they need to sell fast (so that others would not underprice them and slow down or stall the sales--which would certainly happen if they sell at market price).

I think I see what is happening now.

It actually makes sense for such a large player to try to avoid Linden transactions by either collecting cash or using an alternative currency that is equivalent to cash. This could help stabilize the Linden dollar.

However, the root problem here is that the game has become so unbalanced. A few landlords dominate the market to such an extent that it is bound to shake the economy when such a person makes a move or has to make a large tier payment.

Perhaps the Lindens should consider whether any one person should be able to own more the a certain percentage of the land. In the long run they may be hurting themselves by taking short-term profits on land sales and allowing both their income and the game economy to be too dependent on a few individuals.

'A$$' I like that - a very apt description

Isn't that how she used to advertise her old business?

What do you mean advertise? That WAS her old business.

Things have come full circle, I guess

So we can look forward to people peddling A$$ and others that will just suck A$$.

If I had a handfull of A$$ I know what I'd be doing!

Ricky do you know if by any chance somebody has kept the available volume too? This would be quite valuable to do analysis. The rate by itself is a bit too vague to see what is really happening.