Land Theory and The L$ Value
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ReserveBank Division
Senior Member
Join date: 16 Jan 2006
Posts: 1,408
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02-17-2006 11:41
I have a theory about land and the impact that it has on the Linden Dollar valuation. Lets call it the RBD: Linden Dollar/Land Theorem.
RBD: Linden Dollar/Land Theorem ----------------------------------------
As land values rise, more Linden Dollars are needed. Demand for Linden Dollars will grow, creating a supply shortage in the market. This shortage will cause Linden Dollar valuations to rise.
Supporting Evidence: ------------------------- In Aug/Sep 2004 the Linden Dollar reached a valuation of around L$175 (US$5.70=L$1000). At the same time, land was valued at around L$20/m2. Creating enormous demand for Linden Dollars. Shortly thereafter, vast amounts of new Sims began filling the demand for land, bringing land prices down to around L$5/m2. At the same time land prices fell, so did Linden Dollar valuations.
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ReserveBank Division
Senior Member
Join date: 16 Jan 2006
Posts: 1,408
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02-17-2006 11:56
This Theory actually supports my arguement that creating Linden Dollar Denominated Investments will generate demand for Linden Dollars and push up its value.
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Jonas Pierterson
Dark Harlequin
Join date: 27 Dec 2005
Posts: 3,660
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02-17-2006 12:25
I wasn't aware 'Land and economy' meant it was your own little humor forum. From: someone From ReserveBank Division: Don't be blinded by the Socialist Propaganda. Take the mans own advice and ignore this thread.
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Good freebies here and here I must protest. I am not a merry man! - Warf, ST: TNG, episode: Qpid You killed my father. Prepare to die. - Inigo Montoya, The Princess Bride You killed My father. Your a-- is mine! - Hellboy
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Shaun Altman
Fund Manager
Join date: 11 Dec 2004
Posts: 1,011
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02-17-2006 12:34
From: Jonas Pierterson I wasn't aware 'Land and economy' meant it was your own little humor forum.
Take the mans own advice and ignore this thread. But he's finally said something that makes sense!  Blatently obvious, but still maybe worthy of discussion.
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Jonas Pierterson
Dark Harlequin
Join date: 27 Dec 2005
Posts: 3,660
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02-17-2006 12:46
Shaun, the day I look at the words of someone who calls the stipend that my premium fee pays for 'welfare' with any seriousness is the day that pigs grow wings and become the new USAF bombers.
There is nothing worthy of discussion in this thread.
_____________________
Good freebies here and here I must protest. I am not a merry man! - Warf, ST: TNG, episode: Qpid You killed my father. Prepare to die. - Inigo Montoya, The Princess Bride You killed My father. Your a-- is mine! - Hellboy
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Michael Seraph
Second Life Resident
Join date: 9 Nov 2004
Posts: 849
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02-17-2006 13:20
ReserveBank Division is a committee! More than one person must be posting under that name. There's one who was absolutely convinced the problem with the $L's decline was stipends and called for Linden Labs to intervene in the economy to fix the problem. Anyone who disagreed was called a socialist and welfare queen.
Then there's the one who said Linden Labs shouldn't intervene in the economy, and anyone who disagreed was called a socialist and a twit.
Now a new one tells us the problem is the huge amount of new land that's come on the market. This actually might make some sense, but I kind of want to disagree just to see what I'm called this time.
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Ordinal Malaprop
really very ordinary
Join date: 9 Sep 2005
Posts: 4,607
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02-17-2006 13:52
From: Shaun Altman But he's finally said something that makes sense!  Blatently obvious, but still maybe worthy of discussion. Really, though, it doesn't. And I'm quite happy to say why I think not by PM or similar, but I'm not going to give this troll the credit of an actual analysis of his nonsense posted publicly, which might imply that he or she was real or worth listening to.
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Pelanor Eldrich
Let's make a deal...
Join date: 8 Feb 2006
Posts: 267
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What would an $L denominated investment look like?
02-17-2006 13:58
Parnership in a commercial Sim? Stocks? Bonds? Mutual Funds?
Can you guys give me some examples of hypothetical $L denominated financial instruments you'd use as investement vehicles? I'm very interested.
Thanks.
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Boliver Oddfellow
CEO Infinite Vision Media
Join date: 22 Sep 2005
Posts: 484
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02-17-2006 14:17
RBD who ever THEY are may be on to something. Something obvious, as Shaun has pointed out , but something just the same. I for one would like tohear more.
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Ordinal Malaprop
really very ordinary
Join date: 9 Sep 2005
Posts: 4,607
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02-17-2006 14:19
What is it that you think they are on to?
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ReserveBank Division
Senior Member
Join date: 16 Jan 2006
Posts: 1,408
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02-17-2006 20:55
From: Ordinal Malaprop What is it that you think they are on to? I (not we,they,them), I am onto the ties between Land Value and Linden Dollar Value. Rising Land Values create demand for Linden Dollars. The net effect is rising Linden Dollar values. And the primary reason is because Land is a Linden Dollar denominated asset. Now if we could only get MORE Linden Dollar Denominated Assets. Then we might see a spark in the economy.
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Shaun Altman
Fund Manager
Join date: 11 Dec 2004
Posts: 1,011
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02-18-2006 01:27
From: Pelanor Eldrich Parnership in a commercial Sim? Stocks? Bonds? Mutual Funds?
Can you guys give me some examples of hypothetical $L denominated financial instruments you'd use as investement vehicles? I'm very interested.
Thanks. L$ denominated stocks have already been out of the hypothetical for quite some time now. May I sugged a visit to the Metaverse Stock Exchange?  More L$ denominated investment vehicles comming soon too!
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ReserveBank Division
Senior Member
Join date: 16 Jan 2006
Posts: 1,408
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02-18-2006 05:02
From: Shaun Altman L$ denominated stocks have already been out of the hypothetical for quite some time now. May I sugged a visit to the Metaverse Stock Exchange?  More L$ denominated investment vehicles comming soon too! According to your stats, Cyberland has 469,750 outstanding shares with a price worth around L$9.53/per share. This would translate into a Market Cap of L$4,476,717. An impressive number, and moving SL in the right direction. Although only having 1 company listed isn't going to draw enough demand for Linden Dollars to drive up the price. You need to have more than one company listed. It would be nice to see LL do something which promotes incorporation and share offerings to be traded on a secondary market.
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Jonas Pierterson
Dark Harlequin
Join date: 27 Dec 2005
Posts: 3,660
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02-18-2006 05:40
Have fun playing your stocks folks, now you can leave our -paid for- stipend alone.
_____________________
Good freebies here and here I must protest. I am not a merry man! - Warf, ST: TNG, episode: Qpid You killed my father. Prepare to die. - Inigo Montoya, The Princess Bride You killed My father. Your a-- is mine! - Hellboy
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