<?xml version="1.0" encoding="UTF-8"?><rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
		>
<channel>
	<title>Comments on: State of the Economy</title>
	<atom:link href="http://alphavilleherald.com/2008/04/state-of-the-ec.html/feed" rel="self" type="application/rss+xml" />
	<link>http://alphavilleherald.com/2008/04/state-of-the-ec.html</link>
	<description>Always Fairly Unbalanced</description>
	<lastBuildDate>Tue, 04 Oct 2016 13:18:56 +0000</lastBuildDate>
	<sy:updatePeriod>hourly</sy:updatePeriod>
	<sy:updateFrequency>1</sy:updateFrequency>
	<generator>http://wordpress.org/?v=3.1</generator>
	<item>
		<title>By: Heather Heike</title>
		<link>http://alphavilleherald.com/2008/04/state-of-the-ec.html/comment-page-1#comment-13815</link>
		<dc:creator>Heather Heike</dc:creator>
		<pubDate>Thu, 08 May 2008 20:48:27 +0000</pubDate>
		<guid isPermaLink="false">http://localhost/wp_2/?p=735#comment-13815</guid>
		<description>This discussion has gone rather far afield from Jessica&#039;s original thesis.  That being said, let me weigh in on the ephemeral nature of a virtual economy.  Those of us with a substantial monetary presence in 2l should be prepared to lose whatever it is we have &quot;on the table,&quot; if suddenly confidence is lost in the LL sim and everyone bugs out.  Whether it is US paper currency or $Lindens, the underlying economic systems depend on &quot;confidence in the system.&quot;  One is reminded of &quot;El Mystico and Janet&quot; in Monty Python--putting up blocks of flats by hypnotism, a fine thing as long as all residents believe in them.  So, in the meantime, we make (or lose) money and try to cover capital expenditures and investment in (un)real property, fixtures, and possibly even incorporeal heridiments--because if the balloon ever goes up, we all end up with a lot of hyper-inflated tulip bulbs to sell and no buyers.  Its a game.  Not all that different than the life game.
</description>
		<content:encoded><![CDATA[<p>This discussion has gone rather far afield from Jessica&#8217;s original thesis.  That being said, let me weigh in on the ephemeral nature of a virtual economy.  Those of us with a substantial monetary presence in 2l should be prepared to lose whatever it is we have &#8220;on the table,&#8221; if suddenly confidence is lost in the LL sim and everyone bugs out.  Whether it is US paper currency or $Lindens, the underlying economic systems depend on &#8220;confidence in the system.&#8221;  One is reminded of &#8220;El Mystico and Janet&#8221; in Monty Python&#8211;putting up blocks of flats by hypnotism, a fine thing as long as all residents believe in them.  So, in the meantime, we make (or lose) money and try to cover capital expenditures and investment in (un)real property, fixtures, and possibly even incorporeal heridiments&#8211;because if the balloon ever goes up, we all end up with a lot of hyper-inflated tulip bulbs to sell and no buyers.  Its a game.  Not all that different than the life game.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: rip</title>
		<link>http://alphavilleherald.com/2008/04/state-of-the-ec.html/comment-page-1#comment-13814</link>
		<dc:creator>rip</dc:creator>
		<pubDate>Thu, 01 May 2008 08:46:54 +0000</pubDate>
		<guid isPermaLink="false">http://localhost/wp_2/?p=735#comment-13814</guid>
		<description>RoFLKOPTr yes like losing paying customers not search engine zombies, griefers,campers, money launders and all the rest of the freeloaders!

Opensim and other VW projects very similar to SL or slowly coming up behind Linden and will with luck hamstring or kill SL by the end of the year when they all go Beta.

Nothing living is ever static and thats even more true of technology.

Linden will lose their lead, and to be honest, this paying customer will be one of the first to abandon a sinking ship when the time comes.


</description>
		<content:encoded><![CDATA[<p>RoFLKOPTr yes like losing paying customers not search engine zombies, griefers,campers, money launders and all the rest of the freeloaders!</p>
<p>Opensim and other VW projects very similar to SL or slowly coming up behind Linden and will with luck hamstring or kill SL by the end of the year when they all go Beta.</p>
<p>Nothing living is ever static and thats even more true of technology.</p>
<p>Linden will lose their lead, and to be honest, this paying customer will be one of the first to abandon a sinking ship when the time comes.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: MachineCode</title>
		<link>http://alphavilleherald.com/2008/04/state-of-the-ec.html/comment-page-1#comment-13813</link>
		<dc:creator>MachineCode</dc:creator>
		<pubDate>Thu, 01 May 2008 01:44:19 +0000</pubDate>
		<guid isPermaLink="false">http://localhost/wp_2/?p=735#comment-13813</guid>
		<description>Have you forgotten that you spacemonies are worth exactly zero in any real currency? The idea of an exchange rate is an illusion and some unforseen variable could collapse the whole scheme at any given time. And Linden Lab employees will have the exclusively held right not to give a rat&#039;s ass.

Of course, it&#039;s much less likely that it&#039;ll come apart at the seams than it will just implode due to various things making the inflation absurdly high while interest in an unstable platform falls.

It&#039;s like global warming vs. a lazer or something. Wear a cup.
</description>
		<content:encoded><![CDATA[<p>Have you forgotten that you spacemonies are worth exactly zero in any real currency? The idea of an exchange rate is an illusion and some unforseen variable could collapse the whole scheme at any given time. And Linden Lab employees will have the exclusively held right not to give a rat&#8217;s ass.</p>
<p>Of course, it&#8217;s much less likely that it&#8217;ll come apart at the seams than it will just implode due to various things making the inflation absurdly high while interest in an unstable platform falls.</p>
<p>It&#8217;s like global warming vs. a lazer or something. Wear a cup.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Lance LeFay</title>
		<link>http://alphavilleherald.com/2008/04/state-of-the-ec.html/comment-page-1#comment-13812</link>
		<dc:creator>Lance LeFay</dc:creator>
		<pubDate>Wed, 30 Apr 2008 18:21:46 +0000</pubDate>
		<guid isPermaLink="false">http://localhost/wp_2/?p=735#comment-13812</guid>
		<description>What you fail to take into account is that GDP accounts for much more than your limited view of &quot;production&quot;. If that wasn&#039;t true, the U.S. would not be the rich nation the GDP says it is- the vast majority of our economy is service.
</description>
		<content:encoded><![CDATA[<p>What you fail to take into account is that GDP accounts for much more than your limited view of &#8220;production&#8221;. If that wasn&#8217;t true, the U.S. would not be the rich nation the GDP says it is- the vast majority of our economy is service.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: RoFLKOPTr</title>
		<link>http://alphavilleherald.com/2008/04/state-of-the-ec.html/comment-page-1#comment-13811</link>
		<dc:creator>RoFLKOPTr</dc:creator>
		<pubDate>Wed, 30 Apr 2008 16:15:30 +0000</pubDate>
		<guid isPermaLink="false">http://localhost/wp_2/?p=735#comment-13811</guid>
		<description>@Rip:

&quot;Linden Labs needs desperately to clean up its act and take care of its customers in a ethical way or face some real problems later.&quot;

Like losing their paying customers, right? O wait... none of their paying customers know how to do anything outside of Second Life, so I don&#039;t think that&#039;ll be much of an issue...
</description>
		<content:encoded><![CDATA[<p>@Rip:</p>
<p>&#8220;Linden Labs needs desperately to clean up its act and take care of its customers in a ethical way or face some real problems later.&#8221;</p>
<p>Like losing their paying customers, right? O wait&#8230; none of their paying customers know how to do anything outside of Second Life, so I don&#8217;t think that&#8217;ll be much of an issue&#8230;</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Nidol Slazar</title>
		<link>http://alphavilleherald.com/2008/04/state-of-the-ec.html/comment-page-1#comment-13810</link>
		<dc:creator>Nidol Slazar</dc:creator>
		<pubDate>Wed, 30 Apr 2008 15:15:49 +0000</pubDate>
		<guid isPermaLink="false">http://localhost/wp_2/?p=735#comment-13810</guid>
		<description>&quot;The FBI is on his case though.&quot;

Yeah they&#039;ll be busting down his doors any minute now and confiscating his computer for evidence... LOL
</description>
		<content:encoded><![CDATA[<p>&#8220;The FBI is on his case though.&#8221;</p>
<p>Yeah they&#8217;ll be busting down his doors any minute now and confiscating his computer for evidence&#8230; LOL</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Lord Kamina</title>
		<link>http://alphavilleherald.com/2008/04/state-of-the-ec.html/comment-page-1#comment-13809</link>
		<dc:creator>Lord Kamina</dc:creator>
		<pubDate>Wed, 30 Apr 2008 14:52:44 +0000</pubDate>
		<guid isPermaLink="false">http://localhost/wp_2/?p=735#comment-13809</guid>
		<description>lol Frenchfag.

Cry moar.

PS: AMERICA, FUCK YEAH.
</description>
		<content:encoded><![CDATA[<p>lol Frenchfag.</p>
<p>Cry moar.</p>
<p>PS: AMERICA, FUCK YEAH.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Obscure Doodad</title>
		<link>http://alphavilleherald.com/2008/04/state-of-the-ec.html/comment-page-1#comment-13808</link>
		<dc:creator>Obscure Doodad</dc:creator>
		<pubDate>Wed, 30 Apr 2008 14:45:06 +0000</pubDate>
		<guid isPermaLink="false">http://localhost/wp_2/?p=735#comment-13808</guid>
		<description>1) No, it&#039;s not independent data, but a Harvard MBA can probably find some other job if he wakes up one morning and finds he has one that requires him to explicitly lie to 12 million people in intricate detail each month.  Salesmen exaggerate, or choose not to mention things, or maybe even emphasize or phrase something differently, but usually people don&#039;t like to have a job that requires them to overtly lie to customers who are buying a product or service from them.  If they can get a different job, they will.  So these numbers are not worthless.

2) PMLF excludes land transactions.  That exclusion also encompasses payments to LL.  The quote from the stats page is &quot;BEFORE Linden Lab Charges are applied to the account&quot;.  That means these positive monthly flow people may not be positive if they are paying tier to LL.  That always seemed weak to me because while the land cost might be &quot;investment&quot;, the tier is nothing but &quot;property tax&quot;, and that appears in any firm&#039;s operating costs.

3) But regardless of the stats not including LL charges, the worst indicator of all is the number is 58K residents had PMLF.  But there are 89K Premiums receiving weekly stipends.  Maybe they have land, but its cost is NOT in the PMLF number.  That means that not even the number of residents who are receiving weekly stipend manage to make a profit in the economy.  A Premium resident who owns land, pays tier (if he owns &gt; 512) and collects a weekly stipend and sits on his land and builds for fun will be a PMLF count.  A Premium who spends all the stipend and more won&#039;t be.  So what this is saying is that not even the number of residents who get a weekly stipend of income manage to make a profit in SL.

2) What is is also saying is that if LL were to apply LL charges to that PMLF figure, it is reasonable to extrapolate a complete crash in that PMLF number.  We can even estimate the effect.  Category 1 of the PMLF chart is 0-10 USD.  All the other categories do NOT add up to the number of PMLFs who are profitable at less than 10 USD/month.  A weighted average of the categories yields a number of about $83 USD (excluding the top open ended category), but this is not the measurement we need.  What we seek is an estimate of how much profit the &quot;typical&quot; PMLF makes.  With the lower category so heavily weighted that number is swamped out.  With 32,000 of the 58,000 being under $10 USD (which is tier for only a 1024 parcel), even with some of them owning no land at all, the likelihood is that including tier (LL fees) would collapse the PMLF number.

3) Conclusion: That 58,000 number is fewer than the Premium account total who essentially get money &quot;free&quot; each week, and it&#039;s only 0.5% of the 12 million total resident count.  It is further very likely to become miniscule with properly included LL fee accounting.  It looks likely, even with only rough estimates, that the PMLF number would reduce by well in excess of 50% if tier was included.  That would be &lt; 29,000 profitable residents -- out of the alleged 12 million.




</description>
		<content:encoded><![CDATA[<p>1) No, it&#8217;s not independent data, but a Harvard MBA can probably find some other job if he wakes up one morning and finds he has one that requires him to explicitly lie to 12 million people in intricate detail each month.  Salesmen exaggerate, or choose not to mention things, or maybe even emphasize or phrase something differently, but usually people don&#8217;t like to have a job that requires them to overtly lie to customers who are buying a product or service from them.  If they can get a different job, they will.  So these numbers are not worthless.</p>
<p>2) PMLF excludes land transactions.  That exclusion also encompasses payments to LL.  The quote from the stats page is &#8220;BEFORE Linden Lab Charges are applied to the account&#8221;.  That means these positive monthly flow people may not be positive if they are paying tier to LL.  That always seemed weak to me because while the land cost might be &#8220;investment&#8221;, the tier is nothing but &#8220;property tax&#8221;, and that appears in any firm&#8217;s operating costs.</p>
<p>3) But regardless of the stats not including LL charges, the worst indicator of all is the number is 58K residents had PMLF.  But there are 89K Premiums receiving weekly stipends.  Maybe they have land, but its cost is NOT in the PMLF number.  That means that not even the number of residents who are receiving weekly stipend manage to make a profit in the economy.  A Premium resident who owns land, pays tier (if he owns > 512) and collects a weekly stipend and sits on his land and builds for fun will be a PMLF count.  A Premium who spends all the stipend and more won&#8217;t be.  So what this is saying is that not even the number of residents who get a weekly stipend of income manage to make a profit in SL.</p>
<p>2) What is is also saying is that if LL were to apply LL charges to that PMLF figure, it is reasonable to extrapolate a complete crash in that PMLF number.  We can even estimate the effect.  Category 1 of the PMLF chart is 0-10 USD.  All the other categories do NOT add up to the number of PMLFs who are profitable at less than 10 USD/month.  A weighted average of the categories yields a number of about $83 USD (excluding the top open ended category), but this is not the measurement we need.  What we seek is an estimate of how much profit the &#8220;typical&#8221; PMLF makes.  With the lower category so heavily weighted that number is swamped out.  With 32,000 of the 58,000 being under $10 USD (which is tier for only a 1024 parcel), even with some of them owning no land at all, the likelihood is that including tier (LL fees) would collapse the PMLF number.</p>
<p>3) Conclusion: That 58,000 number is fewer than the Premium account total who essentially get money &#8220;free&#8221; each week, and it&#8217;s only 0.5% of the 12 million total resident count.  It is further very likely to become miniscule with properly included LL fee accounting.  It looks likely, even with only rough estimates, that the PMLF number would reduce by well in excess of 50% if tier was included.  That would be < 29,000 profitable residents &#8212; out of the alleged 12 million.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Montana Corleone</title>
		<link>http://alphavilleherald.com/2008/04/state-of-the-ec.html/comment-page-1#comment-13807</link>
		<dc:creator>Montana Corleone</dc:creator>
		<pubDate>Wed, 30 Apr 2008 12:43:07 +0000</pubDate>
		<guid isPermaLink="false">http://localhost/wp_2/?p=735#comment-13807</guid>
		<description>They chose the only rising numbers. Active users are falling, and have been for several months from a peak of 560K odd to 526K last month.  They have fallen by about a third in Europe (except the UK) over the last year, and in Japan, and by nearly a half in Brazil. For two months running US active users fell, the first time that has ever happened, and Premiums have fallen for four consecutive months.

Those are from their own Key Metrics, which is the reason why the February ones were 5 weeks late, and slipped out under the carpet without a blog comment.

It gets worse for premiums though. And there are under 90K of those, less than 20% of users. From the Economic Stats web page in Support, the last section, Sources and Sinks, you can see in March they paid out L$9m in referral bonuses. This is L$2K paid out for new premiums, paid in three monthly instalments of 500, 500 &amp; 1,000. Thus in March at least  9,000 new Premiums were on board, and as many as 18,000 ie between 10% and 20%. Since numbers went down, and these new ones come in, it follows that more than that were old premiums who either left or downgraded. That&#039;s around an average 15% churn rate every month!

We know they tidied up the web site, took off the Last 60 Day Logins for instance, when they were plummeting. Now we have the new Communications Manager Katt Linden trying to convince us they are being more communicative by shifting the status reports to a different blog, which is what we now see on the login page and not recent blog posts. And of course, coincidentally at the very same time, it means all those nsty out of service blog posts are magically cleaned up off the SL web site front page.

Talk about slimy corporate tactics. Still, that gives no excuse for that DiSSENTiON idiot to carry out federal felony offence DDoS and spamming attacks. The FBI is on his case though.

</description>
		<content:encoded><![CDATA[<p>They chose the only rising numbers. Active users are falling, and have been for several months from a peak of 560K odd to 526K last month.  They have fallen by about a third in Europe (except the UK) over the last year, and in Japan, and by nearly a half in Brazil. For two months running US active users fell, the first time that has ever happened, and Premiums have fallen for four consecutive months.</p>
<p>Those are from their own Key Metrics, which is the reason why the February ones were 5 weeks late, and slipped out under the carpet without a blog comment.</p>
<p>It gets worse for premiums though. And there are under 90K of those, less than 20% of users. From the Economic Stats web page in Support, the last section, Sources and Sinks, you can see in March they paid out L$9m in referral bonuses. This is L$2K paid out for new premiums, paid in three monthly instalments of 500, 500 &#038; 1,000. Thus in March at least  9,000 new Premiums were on board, and as many as 18,000 ie between 10% and 20%. Since numbers went down, and these new ones come in, it follows that more than that were old premiums who either left or downgraded. That&#8217;s around an average 15% churn rate every month!</p>
<p>We know they tidied up the web site, took off the Last 60 Day Logins for instance, when they were plummeting. Now we have the new Communications Manager Katt Linden trying to convince us they are being more communicative by shifting the status reports to a different blog, which is what we now see on the login page and not recent blog posts. And of course, coincidentally at the very same time, it means all those nsty out of service blog posts are magically cleaned up off the SL web site front page.</p>
<p>Talk about slimy corporate tactics. Still, that gives no excuse for that DiSSENTiON idiot to carry out federal felony offence DDoS and spamming attacks. The FBI is on his case though.</p>
]]></content:encoded>
	</item>
	<item>
		<title>By: Eric Reuters</title>
		<link>http://alphavilleherald.com/2008/04/state-of-the-ec.html/comment-page-1#comment-13806</link>
		<dc:creator>Eric Reuters</dc:creator>
		<pubDate>Wed, 30 Apr 2008 12:40:44 +0000</pubDate>
		<guid isPermaLink="false">http://localhost/wp_2/?p=735#comment-13806</guid>
		<description>@&quot;Nice try&quot; &amp; @Cai

Zee seems like a good guy, but it&#039;s worth always remembering as Linden&#039;s CFO Zee has not only a *bias* but an *ethical duty* to spin Linden&#039;s numbers in the most favorable light possible at all times.  The more journalists/bloggers/pundits are crunching their own numbers, the more likely the truth is to emerge from the conversation.

My own take on Jessica&#039;s PMLF growth rate chart is that the gambling ban was an SL-economy killer.  Think about it -- its not only the casino owners, from the big guys to the once-ubiquitous slot machines, but all the avatars in Second Life for no reason other than to gamble all buying clothes, hair, etc etc.  The data shows SL is just beginning to recover, and like any maturing market, it&#039;s harder to make a buck than it used to be.


</description>
		<content:encoded><![CDATA[<p>@&#8221;Nice try&#8221; &#038; @Cai</p>
<p>Zee seems like a good guy, but it&#8217;s worth always remembering as Linden&#8217;s CFO Zee has not only a *bias* but an *ethical duty* to spin Linden&#8217;s numbers in the most favorable light possible at all times.  The more journalists/bloggers/pundits are crunching their own numbers, the more likely the truth is to emerge from the conversation.</p>
<p>My own take on Jessica&#8217;s PMLF growth rate chart is that the gambling ban was an SL-economy killer.  Think about it &#8212; its not only the casino owners, from the big guys to the once-ubiquitous slot machines, but all the avatars in Second Life for no reason other than to gamble all buying clothes, hair, etc etc.  The data shows SL is just beginning to recover, and like any maturing market, it&#8217;s harder to make a buck than it used to be.</p>
]]></content:encoded>
	</item>
</channel>
</rss>

