L$ down, is it the result of the emerging banking system?

Could you please explain what you mean here? I am having a dumb day

Peanuts just about sums it up. Developer's incentive is surprisingly low too, and does not cover the costs of getting high on that list.

Sure, If LL opens abank and pys SMALL interest amounts, but puts a BIG hook to get peopel in (Liek the L100 bonus Ginko's did?) Half ofthe people will either A. Leave or get banned. Or b. get flustered an pull out thier money without making any real interest. In effet while whatever money's on depsoit, and esp thsoe that get bored and never come back for it(or can't because of a ban) its out play and the value of L geos UP.

in order to make DEVESTATING aounts of interest, you have to have like 1 milion L at ginkos. If LL's bank pays 2% a month and most peope are putting in 500L or so, a lot fothem are liekly to forget about it once the hype is over and even if they pull thier money after a month or 2, they made 10 L. Maybe a hook like a 1O0L bonus for first time accout holders the first week or so, or something that would get a bunch of people started, and then you'll be making money.

We are assuming ofcourse.

A. people are dumb.
B. people are lazy.
C. people are easily distracted.

But form my expreince, those assuptions fit eough people to make it work. Why do you think the government sells 20 year bonds? Its legalized stealing becuase a lot of people forget they have them or are too dang lazy to cash them...........

This is a bandaide solution granted, but any new bank system increases the value of the money outside by sihoning some f it out, and plainout taking some of too..

How can anyone have any confidence in something promising a hundred percent a year interest rate?

Probably not really an option. LL needs the cash they get from tier fees and would most likely not want to see this flow wane.

Greed?

I'm not even all that greedy, but I still heard that cash register "ka-ching" sound and my eyes turned into dollar signs when I first heard about that rate.

Simple:If they delvier they can pay it becuase al the NEW investors will cover the old ones, its like pyramid scheme and the sooner you get in on it the better.

Quote:
Originally Posted by Development Tool Nomenclature Department
Please do not use the G word in reference to Second Life. If you do, we will hunt you down and kill you.

Buzz off, to some of us IT IS A GAME. Until virtual reality comes to be, it will continue to be so since that's the cloest thing to what SL is. And WHEN SL geos VR I'm pulling my linden and running.........I like SL the Game.

I would say that the biggest thing driving down the L is the land auctions. I have noticed a steady decline since we got the new continent. also, after each sim is sold at auction, it takes about 20-40 days to sell it off piecemeal enough that a landbuyer has $L that she needs to convert back to USD. most, like me, can't afford to take 1000 USD out of our rl circulation for too long, so will sell back the $L when they can. (though I am holding off until I can at least make my modest 10% profit on the investment *crosses fingers*).

I'd say make land auctions possible in $L or in $USD or release a little less land until the value of the $L goes up to 3.8 or so. maybe the Lindens are watching this nosedive and knew that it would happen beforehand, and that's what Phil's comment about interesting trends in land release statistics was about? *wonders and scratches head*.

It is true that the traffic (also known as dwell) incentives rarely pay as much as it costs to earn them. the only possible way it wouldn't be so is if a person never had paid staff (working consistent shifts each day him or her self) and had events on a small property (though it has to be 512 or more to be listed in places, right?)

On the bright side, the events work group is talking about a foundation to help worthy cultural events soon, and I think that would be a good thing. (notice how homogonized the event schedule is of late?)

Stimulating the cultural economy is one way to keep new players in game, which is decidedly good for the economy since new players buy more stuff than older players.

Is there some reason LL doesn't use IGE or GOM to convert their $L to $USD?

I'm not suggesting they pull it out of thin air and sell it, but rather what
they get from in-world fees such as uploading, rating, (and possibly) land
tier fees paid in $L.

I am coming from the point of view that $L is no different than Euro, Yen,
or USD on the world market.

If the US gov wants Euro, I see that they get taxes paid in $USD and then
can convert/sell for Euro, right? Not sure how this is any different.

Hary Moose, you cant compare Secondlife pricing with other MMORPGS... most MMOs have what 10 servers? maybe more then they first open? How many servers does SL run? its constantly expanding, they HAVE to charge based on how many servers they run otherwise every addition eats into their income.

If you mean this, and your somewhat complicated context doesn't mean you are referring only to some special situation with a bank changing its tactics after keeping big chunks of L$ out of circulation, then you are wrong.

I thought we had succeeded in stamping out this previously most widespread and basic of misinderstandings.

A trade on GOM no matter how big or at what price, has no effect on the money supply. This is because it is a trade between two residents. The L$ starts in the hands of one. ends in the hands of the other. It is still in-game.

Same (inevitably and symmetrically) for the US$ involved. The US Treasury needn't worry you are creating or destroying their currency !

It might be worth mentioning, as an aside, that there is a small (and quite different) effect of trading on GOM. Some people put big sums on deposit there, and wait sometime for the trade they want. This immobilisation will reduce liquidity a little, but maybe it would have been immobile in their acounts anyway. A small effect, on liquidity only, not actually on money supply if defined as total L$ inworld.