Archive - 2007
September 3rd
SLCapEx Director Graph
Submitted by Aldon Hynes on Mon, 09/03/2007 - 17:43This is a graph showing the relationships between directors and selected companies traded on the Second Life Capital Exchange.
Meltdown in SLCapEx Trading Firms?
Submitted by Aldon Hynes on Mon, 09/03/2007 - 11:04During my recent trading in the Second Life Capital Exchange (SLCAP), three stocks have particularly caught my attention, AIG, BNT and DGD. The three stocks are closely tied to trading activity here and each have seen interesting activity.
September 2nd
Trading in Second Life
Submitted by Aldon Hynes on Sun, 09/02/2007 - 12:29Over the past several weeks, I’ve been actively trading on the stock exchanges of Second Life and it seems as if this style of trading has broad implications for capital markets for small businesses.
Second Life is a three dimensional virtual world. Like other such worlds its own currency, yet unlike other such worlds, Second Life goes beyond the goal oriented game paradigm and allows users, often referred to as ‘residents’, to create whatever they can imagine and program.
One thing that has been imagined and programmed is stock exchanges. In a previous entry, I have provided a brief history of some of the Second Life Stock Exchanges. Theses exchanges, for the most part, are dependent on the Linden Dollar, the currency of Second Life.
The Linden Dollar is a fairly stable currency. There is an active exchange between Lindens and U.S. Dollars. Currently, they are trading around 265 Linden Dollars to U.S. Dollar and fifty to sixty million Linden dollars are exchanged each day.
Every resident receives fifty Linden dollars each week that they are active in Second Life. This money can be used for a variety of purposes. Some are basic to the functioning of Second Life. For example creating a new group, or uploading an image into Second Life costs Linden Dollars. Linden Dollars are also used for buying, selling, and renting property and objects in Second Life. Performers at live music events often have a tip jar where listeners can contribute to Linden dollars. Charities often hold fundraisers where people contribute Linden dollars. Others have used Linden dollars for things like gambling and virtual prostitution.
I have contributed to performers and charities in Second Life. I have bought objects that allow me to post to blogs on the web from inside of Second Life. I even bought a car from Toyota in Second Life. I have also stored money in a bank, the collapse of which brought me into the world of Second Life Trading.
Ginko Financial had ATMs around Second Life where you could deposit your Linden Dollars. They were returning a high rate of interest, approximately 44% annually. I placed a small amount of my free Linden dollars in Ginko Financial and when they collapsed , Ginko Financial’s deposits where transferred into Ginko Perpetual Bonds (GPB) which are traded on the World Stock Exchange (WSE).
Over the past month, I’ve executed over 150 trades on various Second Life Stock Exchanges for a total of over 12,000 Linden Dollars. I’ve earned over 1,200 Linden Dollars after spending over 150 Linden Dollars in commissions. Translated into U.S. dollars, my average trade was for thirty cents.
While the fifty cents in U.S. Dollars that I’ve spent on commissions isn’t a lot, if enough people trade, this can add up to a reasonable amount of money. Likewise, the four dollars in U.S. currency that I’ve earned isn’t something I can make a living off of, it is something that I can use to enhance my experiences in Second Life.
As I’ve researched the different companies that I’ve invested in, I find that they have capitalizations in U.S. dollars ranging from $500 to over $300,000. This can be a tad misleading, since many of the companies have significant insider holdings. Excluding the insider holdings, these capitalizations drop to the range of $300 to $26,000.
Many years ago, a friend of mine learned trading by trading pennies with an experienced Wall Street trader. The pennies that he lost were miniscule compared to the value of the education that he received trading. Likewise, the stock exchanges of Second Life provide an extremely valuable environment for individuals to trade and learn from the experience.
Years ago, my wife worked on setting up a brewpub. The brewpub’s capitalization was in the range of $200,000. It was a painful and onerous process recruiting investors. Some of this was because the minimum investment was in the hundreds of dollars and there was no active secondary market. Raising capital would have been orders of magnitude easier if individuals could easily have invested five dollars here and there, perhaps even at a bar, and been able to get out of those trades with similar ease.
Building upon the current trading environments of Second Life could provide valuable resources both for educators as well as for the small business community. It is time to take this trading to the next level.
September 1st
Quick notes on the Doninger Case
Submitted by Aldon Hynes on Sat, 09/01/2007 - 20:38Lauren Doninger forwarded an email to me from Greg who writes for Rhymes with Right. He has a brilliant blog post up, Shocking Decision In Douchbag Case. He and I may not agree on many issues. Yet our freedom to disagree and to argue our points of view are an important part of what makes our country great and strong. It is part of the reason the Doninger Case is so important.
With that, it appears as if the case is now headed to the Second Circuit. These sort of appeals cost money. If you can contribute, please click on the widget in the right hand column or go to Avery Doninger Appeal to 2nd Circuit. Please contribute whatever you can.
Reflections on the Doninger decision and the discussion at the Hartford Courant.
Submitted by Aldon Hynes on Sat, 09/01/2007 - 10:02I was very interested to read the article in the Hartford Courant concerning the decision in the pretrial hearing of the Doninger case. The article is somewhat inaccurate and needs correcting. More significantly, the discussion in the forum is woefully laden with assertions based on misinformation.
The second paragraph leads off, “school officials were within their rights when they punished her for the comment as if she had made it on campus, a federal judge ruled Friday”. The problem is, that isn’t what the judge ruled. The rushed pretrial hearing, without any period for discovery, was to allow Avery Doninger to stand for re-election as class secretary, a position she won the plurality of votes as write-ins, but was not certified the winner because the school administration was upset about her blog post.
Judge Kravitz noted that there is a very high standard for providing a pretrial injunction that would change the status quo, and there did not appear to be enough evidence in his mind, to require such a pretrial injunction. The reason to seek a pretrial injunction, as opposed to waiting for the results of the full trial is that the full trial could take many months, or even years, and not be completed by the time Avery graduates from high school. It is noteworthy that Judge Kravitz often commented from the bench about this case being likely to find its way to the Supreme Court. Such a process could take several years.
So, school officials were not within their rights. Instead, enough evidence was not shown during a pretrial hearing to prove that they taken away Avery’s rights.
Now, on to the comments. Several parents have criticized Avery’s mother for not punishing Avery, or teaching her to admit when she is wrong. The problem with there assertions is that they don’t know the facts. Avery’s mother did punish her, in what I believe was an appropriate manner. Yet Avery’s mother also stood up for the basic freedoms that we have, even in a case where the speech was not something she approved of. This is laudable. It reminds me of when the ACLU stood up for the Nazi’s right to demonstrate in Illinois. Sometimes defending our basic freedoms means defending actions based on those freedoms we do not completely agree with.
An important issue is, who has the right to punish high school students for something they have done at home? Is it appropriate for the school administration to punish a student for something she has done at home, or should that be the responsibility of the parents. Personally, I believe that should be the responsibility of the parents. Avery’s mother acted responsible, and the school administrators’ actions overreached their responsibilities in a manner that is damaging to our country.
Another key issue is determining what speech is acceptable. As I’ve noted elsewhere, whether or not specific language is offensive is a question of context. Personally, I think many of the comments on the forum are offensive. It is not appropriate to be calling judges idiots because you disagree with their opinions. I watched Judge Kravitiz in the court. I disagree with his ruling, but he made many brilliant comments from the bench and illustrated a great depth of knowledge and understanding throughout the trial. To call the child a punk is offensive and inaccurate. The judge repeatedly noted that Avery is a model citizen. To call the mother a nut-case is likewise offensive and inaccurate. Mrs. Doninger demonstrated throughout the process a commitment to education, to our democratic processes, and to our basic rights that is sorely lacking in our country today.
A key issue in Freedom of Speech cases is whether of not an action will have a chilling effect on people’s freedom of speech. The response from a reader in Cheshire illustrates quite nicely this chilling effect:
I'm teaching my son to keep his mouth shut and opinions to himself so he can graduate from school without aggravation. Then when he's 18 he has the freedom to callout all the douchbags.
One of the interesting aspects is the call by Avery, as well as by other students, to have parents contact the school about the schools decision concerning a school event. During the trial the school administration tried to argue that speaking with parents was a disruption. There are some people in the thread that also seem to believe that school administrators should not speak with parents about school events. This is truly unfortunate. We need to encourage parental involvement, not discourage it.
I have written a lot on this case. I believe that there has been a wonderful teaching moment on the importance of free speech, on the importance of our democratic processes, and on the importance of civility in discourse. From what I have seen, Avery’s mother has fought hard to make sure that these lessons are learned, and the school administration has focused on wounded pride instead of trying to teach their students. For the sake of the Doninger’s I wish this were over. Yet for the sake of all of us learning more about our country, I’m glad it continues, and may in fact make it to the Supreme Court.
This is too important an issue to write quick statements that reflect a lack of understanding of the issues.