SELLERS! Linden exchange OUT OF CONTROL!

Holy schnikes! I had no idea the USD had dropped that much!!! Good god!

there is a much simpler solution if you think you should get more USD for the goods you are trading. raise your prices!

Tabitha, You might want to look at the idea I posted on this subject last month in this tread:

/130/dc/99616/1.html

mine are posts #55 and #62

It could work, if you could get enough people to join.

we absolutely do not! don't get swept away. raise your prices!

In the RW, currency exchanges are tremendously difficult entities to understand. It is the same in SL.

In SL, those selling lindens do so because the time is right for them. Many may be concerned that the linden may lose ground even more to the US$ and therefore sell now to reduce their risk. Since US$ have real value in the RW and Lindens do not, there is nothing wrong with sellers cashing out. It is their money at risk.

Even if all sellers halted their activity for one day, it would not solve the problem. It will just temporarily reverse the current direction of Linden devaluation.



Absolutely, Shaun! Even though this is a virtual world, supply-side economics is still in affect. There are many more sellers than buyers right now. Buyers are getting a good deal as the sellers fight for the limited supply of buyers.



That is exactly what I have been saying in other threads. If retailers are so concerned with Linden devaluation, they should raise their prices.

In the RW, when raw materials, labor, and products cost more, vendors raise their prices. Persistent price increases is called inflation. As the US$ loses value to other world currencies, it costs more to buy raw materials and products from International vendors. This can also result in price increases.



Until the majority of retailers in SL raise their prices, there is no inflation currently in SL. Inflation and currency devaluation are separate, distinct issues. Although devaluation can lead to inflation.

If everyone canceled there sell orders and put them 40 points higher (260) we could start all over again with the undercutting game. I don't see how it just won't keep getting worse and worse for sellers. Even if it hit 361 to 1, it there will be someone that doesn't want to wait and will post at 362 to 1. There will always be undercutting to get out ahead of the line waiting to sell and impatient sellers that want their money yesterday. There are too many BIG sell orders and not enough BIG buyers.
The market can also easily be manipulated. If someone had 3 million Lindens to sell, they could post at 305 to 1 today. Every one else will not put they're orders at 305 because they don't want to wait. So the rate will naturally rise to 306 to 1 and then 307 to 1. This person with 3 million Lindens then could easily cancel their order and then put them all at 308 to 1 to start another fall of the Linden dollar. Then a panic sell could start and the price could fall 8 Lindens like it did on Monday.
It's time to raise prices to keep up with tier. Tier continues to stay the same price, but the value of the Linden falls. It's not even raising prices if you compare RL dollar amount. If something was 260L in january it was 1 dollar. If the price was raised to 305L, its the same price today so its not really a price change.

why would i want to put my lindens at 360 and not be able to sell them? i'd rather sell my L$ quick and easy.

why cry over spilled L$? rasie your prices!

When will you understand, the problem is with Linden Lab Policy.
Not with the trading practices of SLers?

Fix the Policy, You fix the Linden Dollar Valuation.

Lets say that tomorrow Linden Labs Fixes the price of the Linden Dollar.
Lets assume the fixed rate is L$250. So no matter what, anybody who uses
LindenX has to either buy or sell their L$ for US$4.00 for 1000 L$.

Day 1: LindenX Forces a Buy/Sell valuation of L$250

Day 2: Everybody starts selling L$ on SLExchange, eBay, GOM v2.0, etc..

Day 3: The new L$ valuation is back at L$305.


See the problem with trying to control the trading of people? They don't
play nicely into a Controlled Socialist Utopia. If they can't trade on LindenX,
they will find somewhere else to trade their L$. Just like they did before
LindenX even existed prior to Oct 2005.

Control of Trading isn't the Solution. Repairing the lack luster economic
policy of a failed King is the solution. Realize that, and everybody will
enjoy the Boom Times of SL in 2006.

Destory the Linden Dollar Printing Press...

Going on past great strategies

Nows about the right time for Linden to invoke the new TOS clause - dump 50million Linden into the pot at 350 - and totally destroy SL once and for all.

Then we can all start again and lose another shirt.

"Out of Control" - you said it.

Please people, stop whining.

You want capitalism, you want a free market.

You got both, but because they aren't going where *you* want them, rather where the market takes it, you aren't happy.

Have you ever considered that the real value of the L$ is more around 300, rather than the 250 artificial limit set by LL to start with?

The fault is the sellers, who are cashing out in desperation to make a quick buck - including some very big names as I understand it.

Buyers see a bargain, and grab it up. It's the nature of business.

Remember that if people weren't buying L$, nobody would bother selling them.

This fake panic is all getting a little tedious. If LL ran their game like most other decent companies and disallowed the cashing out for real money of game money, and introduced ways to earn money as well as continuing with the stipend, then the problem is entirely fixed altogether.

Lewis

...and how would you come to such an "understanding"?

When you see 'blocks' of like half a million L$ on the charts, the vast majority of people don't have that kind of money to sell - except land barons who collect their rent in L$, who need to cash it out and pay their tier in $.

There aren't many people who make enough money to live on out of SL - despite their claims, so it can only be a small group of big name players, most of whom are the land dealers, who have the amount of L$ in the first place.

Lewis

Lewis is right about big sellers and the market data is somehow flawed when on Sunday I watched single trades entered at 298 that were completley sold out when the linden starting selling at 297. This happened twice for 300K and 500K. Where are these trades in the market data? It states the largest trade was 196,619. Maybe there was a single trade of the 300K or 500K offer that sold that much but both the 300K and 500K offer were sold completely that day. If the Lindex would brake out data to show how much was sold from offers totaling over 100K and offers totaling under 100K we could see who really drives this market and you will find it is a few big sellers who will not hold the Linden. My guess is there are many more large Linden holders not selling out every day waiting for a better price than the few who are. Who is right? Only time will tell but as long as there are more large block sellers putting more offers out there than the 8 million Linden bought every day the only direction is down.

The real danger is if the large block holders panic with the nervous few we already have and start offering 16 million over the last trade rate then we could see 500 to 1 or even 1000 to 1 rates by the end of the year. Who benifits then, whoever has the power to buy all those Lindens offered at 500 to 1 or 1000 to 1 when the real panic sets in and keeps buying until the Linden is selling at 250 to 1 or 200 to 1. Granted they would be holding lots of Lindens by then and would have to slowly sell at the desired rate but the profit potential is tremedous if you buy at 1000 to 1 and sell at 200 to 1.

Who has that power? LL thats who and then see if they don't start showing a profit..

Good/Bad - its all in the eye of the beholder.

Right now some folks are playing chicken little and dropping huge chunks and the chart keeps a climbing... But even then it's good for someone. It's a great time for folks who use the OTHER side of the Lindex (buying) to get a good deal.

And I think thats pretty cool too.

More people with some cheap L$'s in their pocket means more people can go out and pick up those things they want.. Hopefully a few of those things will be mine.

It's all give and take - you can't have it in your favor all the time.

As for me - sure I make things and sell them in SL but I'm not going to blow my gasket.. Won't even break a sweat - I'll continue doing what I've always done:

Get total costs of my participation in SL - divide by 30 - gives me 'small figure x'

Sell off 'small figure X' worth of L$ each day at whatever the rate is - at that small amount it really doesn't make that big a difference - and wait till the market hits a figure *I* like to sell off some L$ at..

And in the meantime I'll enjoy watching folks having a shopping spree.

And you call yourself a capitalist legend? Too funny!

Today's average: L$311.3531 / US$1.00

Wow.

I opened the page it was L$311.32. I blew my nose, hit refresh, and it was 311.35.

I just looked out of my window and the sky isn't falling.

Vasudha's silence is underwhelming. Where are the experts in all this?

Edit: Whilst typing this post, it's gone up to L$311.38.

Lewis

Way out of control.

It's the panic selling that's out of control - the fault of the residents cashing out, not the fault of Lindex or other LL policy.

It's the free market in action, being pushed by the actions of residents who are desperate to offload their L$ balances before it drops any further.

I guess the common sense of sit tight and wait for the market to go the other way is just beyond the grasp of 'experts'. Remember with any investment, the value of that investment can go up as well as down - its a line they sell you with anything that you put money into hoping to get a gain.

L$311.43.

Lewis

Life is great! Let's hope this greed fest ends up into the black hole of foolish dreams. Once the L$'s value <= 0, maybe people will wake up and realise that betting on the virtual should remain a game. Only a few can make real money off of other people's back. And we all know who those are. After all, a virtual shirt is only worth it's weight in L$, which is really 0. The only thing with real value is virtual land, because it is real space on a server. The rest of SL is just in your imagination. Seem people driven by greed tend to loose grip with reality and put real money in a virtual dream.

Nothing wrong with that, if they have money to spare, they can throw it through the virtual window all they can...

Damn... keep posting like that and people are going to think you're an alt of mine!

The fact I have none tends to be irrelevant in such discussions.

L$311.58

Almost tempting to try and turn a little profit myself from the panic of others. I guess it'll at least start to weed out those who are here for the right reasons, and those who are just here for money. So when are LL going to revise their marketing angle and list the benefits of SL, instead of pushing the money side?

Lewis

Bah, people make their own opinions regardless of what anyone says, that's why the world is in such sorry state.
But to stay on topic, it's interesting to see where this money thing is going. Economic's has always been a long term system. The introduction of internet trading has only introduced a lot of very short term noise in the system. People have irrational reactions to all kind of bad news on TV and scramble to buy/sell according to their view of the condition of the world "as seen on TV". No wonder they go panic. Stock and money trading should be left to professionals.

But, then people would whine about restriction of freedoms, the pursuit of happiness, and all that crap...

You don't need to pursue happiness! Just sit still and it will come to you. Go to a park, sit on a bench, feed the birds, learn from them...

I'd hold of a little while on that one, just a guess, but I think we may see a bit more panic selling yet. Meanwhile, I've decided it's a great time to buy some L$ and go shopping (normally I won't spend more than my stipend on content and earned L$ get saved, invested or pay expenses).

I actually kinda agree with your last sentence. The money angle's fine, and I think the sort of press we've seen lately is good for SL, but it'd be nice to attract residents with other interests/reasons for being here as well. Diversity is good.

We have a lot of people here who think they are.

L$312.23. That's L$0.6 in 20 minutes.

Lewis