Socially|Mundane

I have been saying for quite some time that the Second Life economy has been on a slow-down. From my perspective 2008 is nothing at all like it was in 2007. I am no economist, but it just strikes me that things have finally 'stabilized' and the wild west days are finally giving way to 'civilized' means of living.

Part of the issues with the economy have to do with land-baron-bots, the ad-spammers, SL bank failures (everyone who banked with these virtual banks got what they deserved in my mind - greed give comeuppance one way or another,) the so-called stock exchanges, land market falling on its face, the freebie entitlement attitudes so many newer residents have, the dishonest plagiarizers who manage to copy and sell other people's creations or those of ill-repute who box-up freebies and try to sell them as business-starters and so on. That along with too many people and no central place to shop.

No matter where you go in Second life, you can rarely spin around in a 360-degree circle without seeing a vending machine selling something. Thus, the market is literally spread like butter. You only sell to people if you have what they are specifically hunting for.

A random impulse buy is incredibly rare. it's simply too easy to search and teleport, popping from sim-to-sim and mall-to-mall. Or shop online with SL Exhange or OnRez.

It's a regular roller coaster ride.
And those outside are only now beginning to notice what is happening inside:

The Second economic crisis: "Unfortunately, the Second Life economy was not as decoupled as residents may have thought. In early January 2008, many virtual banks in Second Life, some which offered as much as 200% and 300% annual interest rates, collapsed. Users made runs on several banks till accounts had to be frozen. Bankers, residents found too late, were unable to live up to their payout promises.

"And now, in an uncanny reflection of real-world turmoil, The Sydney Morning Herald reports that land prices on Second Life may have crashed by as much as 90%."

Well, at least they're only now beginning to take enough notice to write about it.
via Live Mint