Clang Clang Clang!! Opening Bell... L$324 / $1 USD... L$ Down Again!!!

Sell side activity remains strong while buyer side is evaporating....

Major indicators flashing

SELL
SELL
SELL

edit: now L$326 / 1

Yikes!

I wish you'd evaporate... you do realise your panic statements are contributing to the dive?

Lewis

Not true, the L$ money supply is causing the decline. I'm merely warning everybody to cash out right now because the fundamentals do not look good.

Instead of 'warning', why not provide a proper solution that benefits everyone, rather than the tired "kill stipends" argument?

The idea has been mooted about increasing upload charges for larger textures. That encourages smaller texture sizes, better loading times and increased fps for everyone due to less data needing manipulation. As far as I can see, there is no reason not to implement this, except it obviously isn't high on the love machine list.

Lewis

I agree with you lewis, this "PANIC SELL NOW!" attitude is what is making everyone sell their L$ as soon as they get it. its not a problem with how much money is in the economy, but how much is being put up for sale. The spread is closing in, and is only a 24 point difference. Stability is closing in, but not where we expected. The sky is not falling, just peoples IQ.

Non economics brain here ---> moi


If everyone would hold onto their Lindens until stipends are eliminated, would there then not be a market to drive prices higher ?

Updated for the masses... L$ continues drop.

L$326 / $1 USD

SELL
SELL
SELL

...and as a result the price of free content in certain stores will surely rise.

maybe I don't understand properly, but it seems if everyone tries to sell at once the value will drop even more. Bad advice!

Contributing?!?! HE** Lewis, they're causing it and they know darned well what they are doing. It's by design. Personally I think the real pupetmaster behind this is the one who oferred to introduce a new curency. I am sure you remember those threads, about a currency backed by a non-existent RL currency/item.

We can't control what people say and do. They may scream, panic, sell, whine <add a relevant verb of choice here> etc.

It doesn't matter what people do!!!

Simply put, the problem is an over supply of available linden. The only way to change this is a change in monetary policy. Otherwise, so long as there's an over supply of linden the linden market will continue to sell out, until supply and demand meet in equilibrium.

Actually no the real problem is a small core group of money mongers who provide zero content in game, and think thier chief mission in life it to manipulate tohers into thier way of thinking thereby forcing everyone to purchase thier imaginary currency.

Actually it is only a few who have an over supply of linden. Most people's linden supply hasn't increased at all. Stipends put more money into the economy, but it still puts the same amount into everyone's pockets. People who needed to buy $L's 5 months ago still need to because they're still only getting $L500 a week (or $L50 as the case may be) However now people that buy their $L's are getting more than they did 5 months ago, I don't think that has anything to do with the static stipend amount.

A few of our like-minded residents continue to repeat this over and over again despite the overwhelming number of reasoned threads, including those from economic experts, that have attempted to explain the fallacy in this assertion.

At this point, I am certain that even they do not believe this and simply stubbornly refuse to accept the reasoned facts, choosing instead to repeat this in an attempt to undermine and demean those who offer a differing point of view that conflicts with their interests and beliefs.

Those who succumb to this belief are, of course, entitled to post their opinions and beliefs as they see fit. Recognize however, that by doing so one risks bringing into question their level of basic economic understanding. This may or may not matter to you, but the concept of supply and demand, which is the dynamic currently driving the downtrend on the lindex, is really a basic economic reaction driven by market forces that will only be curtailed through change in monetary policy.

I am getting tired of responding to these threads! I do not buy Lindens with the possible exception to have bought land in the past.

I do not buy lindens to spend on content. I pay enough in Tier to Linden Labs every month. This is my hobby and not lifes work. No stipend equals no content purchase. What can be easier to state!

Well back to the real world and work!

More to the point Ranma, all of this bickering back and forth only mattered if prices in-world remained constant. What is begining to happen now is that merchants in-world are now begining to raise their prices. So that in essence, your stipends will begin to be worth less, even though you will still receive an $L500 stipend.

Recognize, that the fight was only worth fighting while in-world prices remained constant. This is because the devaluing linden price on the LindeX to date, was increasing your purchasing power in-world. If the increased discontent expressed through posts by well known content creators on these forums is any indication, it appears that the drastic recent devaluation of linden, has finally forced them to increase their in-world prices in unison.

You may not realize this but what this equates to is exactly what you have been so bitterly fighting against on these forums. A reduction of your stipends due to their limited purchasing power. And if the downward trend of linden continues, LL might as well eliminate the $L500 stipend, because it will be worth essential nothing.

The old saying, "be careful of what you wish for," could not have been more applicable to those who vehemently opposed an adjustment to our stipends.

Warning: This may be way over your head if you can not grasp basic economic principles, or the law of supply and demand.

It's true that if we are going to have a proper inflationary spiral we need in-world prices to increase. However, people seem a little lax in doing this. Come on! Don't you realise that it's your duty to simulate RL economic processes and make the L$ worthless?

I pay for my stipend! I pay Linden Labs for that service. The residents dropping large amounts of Lindens on the market are the problem and not we the people who support Linden Labs. I refuse to suffer to make landlords and content providers more money!



I have a degree in Economics and truly understand about supply and demand. Understand these content providers have an unlimited supply of content. Their costs are the same if they sell 1 unit or 1000 units. The supply curve is a straight line of fixed costs. They need to sell more units. Increasing their price will decrease demand.



Of course if the Linden Fails I will not lose anything. The content providers have everything to lose. The land barons better start charging their customers in dollars. I refuse to buy Lindens with dollars!! I refuse to buy content with dollars! If I have to will make everything myself. I have lots of content to play with and can figure out how to do it with time. I am not on Second Life for content it is a side benefit.



If the content creators don’t like it they are not forced to remain in Second Life and I wish them well in their new endeavors.

No, Ramma is the financial officer for some huge fictional japanese company. I'm sure he understands.

Listen Ranma, you are wrong in this situation.


In a normal economy, increasing prices will reduce demand.
In a HyperInflation economy, increasing prices will (NOT) reduce demand.

Hyperinflation:
------------------
In economics, hyperinflation is a condition in which prices increase extremely rapidly as a currency loses its value. It is inflation out of control. Formally, it is "an inflationary cycle without any tendency towards equilibrium."

I have noted you, and others, on these forums to exhibit an increasingly contemptuous demeanor toward content creators. And I must admit I am a bit baffled by it.

Have you had bad experiences with content creators in SL who have predisposed you to feel ill will toward them?

All content creators do is create content for SL. In return, they simply request to be compensated for their efforts. What they do not do however, is force anyone to buy their content. That is entirely up to the consumer and whether she or he find that particular content worth buying.

I find it particularly baffling that you, one who proudly proclaims to spend no linden on content, would be so against content creators when they have such a negligible impact on your SL life.

I am sure you and others have your reasons. Im just slightly baffled by it is all.

Ah I am a girl not a guy and dont want my RL and SL to meet! If I gave you my emplorers name you would have my RL name. I dont want some rl griefer bothering me at home.

Ah our money supply does not increase. My income is not increasing. If the content providers raise their prises too high I would just not be able to buy anything at all. I refuse to buy your Lindens with my dollars!

Money supply isn't the cause of the linden fall..
It's currency speculators...

I am just tired of some of the content makers saying that the premium members with their stipends are the cause of the Lindens devaluation. We support Linden Labs with our dollars both in membership and tier. I just dont want to lose my stipend and when that fails to prop up the Linden to get blamed for not buying content.

We pay a lot of money to play Second Life and hate getting blamed for the Linden worries. There is more to the Linden devaluation than stipends!