Archive - 2008

January 9th

The Future of the Second Life Economy

Linden Lab is finally attempting to reign in the abuses of unscrupulous banks within Second Life. This is long overdue and if done right will help grow the economy in Second Life. However, I have numerous concerns about their approach. They seem to be seeking an approach focused on imposing rules, that may be self contradictory instead of engaging the technology and community, which is core to Second Life, to address the underlying issue.

Second Life Banking Policy

I was away from the computer much of yesterday and will be away much of today as well, which is unfortunate, because yesterday, there was very big news. Linden Lab announced a new policy concerning in world banks.

As of January 22, 2008, it will be prohibited to offer interest or any direct return on an investment (whether in L$ or other currency) from any object, such as an ATM, located in Second Life, without proof of an applicable government registration statement or financial institution charter.

Plenty of people are writing about this already. Vstex's post is here. DFC's here, CSL here, AVC here, SLCapEx here and here. Benjamin Duranske provides commentary here. Nobody Fugazi has his comments here. SLNN has this op ed up, and SL Reports has a long list of articles.

With all of that, on top of my limited connectivity, there isn't a lot that I can add at this point, other than a few questions. The first question is what is meant by 'Direct Return on an investment'. While this is aimed at in world banks, will dividends be considered a direct return? If so, it has a profound affect on many companies in Second Life. What does this do to exchanges? To investment companies? The other important question is what Linden Labs will consider 'an applicable government registration'. Does simply forming an LLC or registering a company count? AVC and Wise Metaverse LLC have posted information about their incorporation, but registering a company is very different from a financial institution charter. In addition, Linden Lab has not provided a mechanism, at present, for reporting which institutions have met their criteria to continue banking activities.

So, what does this mean for financial institutions in Second Life? Short term, there is likely to be plenty of volatility. To the extent that the exchanges can keep trading orderly with minimal use of shutdowns, trading halts or automatic circuit breakers, the markets should do fine and should provide some good investing opportunities. To the extent that Linden Labs policies are not excessively strict, those companies that are providing real services can only benefit from this, but building more confidence in the financial markets. The risk at this point is determining which companies are in fact providing real services that will be vetted by Linden Lab.

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January 8th

Notes from New Hampshire



Vote, Vote, Vote in Hanover, NH, originally uploaded by Aldon.

I'm dropping Fiona off at a friends house before returning to the final push in the New Hampshire primaries. As can be expected when campaigning with youngsters, we again, got off to a late start. Yet the weather is beautiful, sunny, between 50 and 60. Today, we've been working out of the Salem office, which provides a sharp contrast to Claremont. Claremont is a small office. Salem is perhaps smaller in size, but is close to the Massachusetts border and has been packed with volunteers.

Kim, Fiona and I went out for a final day of canvasing. Fiona did a great job of speaking to voters, expressing her hope that they were going to vote for John Edwards, if they haven't already. Voters were friendly. Many had already voted. Most had already made up their minds. However, we are hoping to make sure all of those that want John Edwards actually make it to the voting booths and anyone who is still swayable seriously considers John.

It was a well to do neighborhood we visited, and there were a lot of Clinton supporters, quite a few Edwards supporters, and surprisingly few Obama supporters. The word we are hearing is that undecideds and weak Hillary supporters are breaking for John. The office has made an incredible amount of calls and there were no signs of supporters of other candidates out canvasing or door knocking. There were a bunch of Hillary supporters at the voting place we passed, and there was one lone McCain supporter doing visibility at a busy intersection.

All of this is based on what I saw in one small part of Salem and overheard others saying, and I have no idea how things will turn out when the votes are counted, other than expecting another record turnout.

At the campaign office, I chatted with volunteers from places like New Jersey and California. One of the discussions were about how lucky voters in New Hampshire are to have the first primary, even though some of the people we were calling, might wonder how lucky they are when they get their thirtieth phone call. There were discussions about whether other states should have an opportunity to be first in the nation, and about how seriously the folks in New Hampshire take their voting.

I suggested that perhaps a good way to work things out is that states with the highest turnout should get the chance to be the early primary states in the following election cycle. The idea was well received and I think addresses nicely the question of how seriously different states take their primaries.

The other interesting thing to note. Reports are starting to kick around about a Clinton cash crunch. It is hard to believe, considering how much money she has raised. However, reports are that she spent between $15 and $25 million in Iowa, all to get around fifteen delegates. When all is said and done, Obama, Edwards, and Clinton will all receive about the same number of delegates from Iowa. It will be interesting to see how many each candidate gets out of New Hampshire. With the votes being as close as they are, and the small number of delegates assigned so far, it is a long way until the convention. People are even starting to talk about a brokered convention.

Back to the delegates and the math. If Hillary did get 15 delegates after spending $15 million, at that rate, she would need to spend over $2 billion dollars to get enough delegates to win the nomination. No wonder there is talk of a cash crunch. I haven't heard reports of exactly how much Obama has spent but it looks like John Edwards is clearly getting the most delegates per dollar. It is a good illustration of how the system can be changed to be less dependent on big dollars from lobbyists for irresponsible corporations.

This gets back to the underlying question. Everyone is for change. The question is, what sort of change. Having a black man as President would be a change. Having a woman as a President would be change. Having a person who is spending money effectively and wisely and focusing on a message of standing up for the middle class would be a very big change.

There is plenty more to be said about this and all that is going on here in New Hampshire, but it is time for me to get back to the canvasing and phonebanking. I'm happy to be using a little elbow grease to get the message out, instead of paying large amounts to the corporate owned media.

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January 7th

Canvasing in Claremont

I spent another day canvasing in Claremont today. With Fiona's cousins in school, she stayed with Kim at the campaign headquarters. Fiona watched DVDs and Kim worked the phones. It was a beautiful day to be canvasing. The weather was warm and the sun broke through from time to time. I spoke with several people out walking their dogs as well as whomever I could find at home.

The first neighborhood seemed to be a solid working middle class neighborhood. Obama seemed quite strong in the neighborhood, but Edwards was doing well too. There wasn't much for signs of support for Clinton. Richardson supporters had been through the neighborhood and at many houses I found literature that had been left by them.

The second neighborhood that I visited was a mobile home community. Just about everyone there was retired, home, and very friendly. I had great talks with many people. There seemed to be more Edwards supporters there, but still there were a lot of Obama supporters; the Obama team had canvased the neighborhood earlier in the day. Inside the mobile home community, I didn't find any Clinton support, but when I started canvasing some of the neighboring streams I found a small enclave of her supporters.

Driving between canvasing locations, I listened to Vermont Public Radio which had a series on about people out canvasing. I tried to call in, but had copied the number down incorrectly, so I left it to get back to my canvasing. It did make me think about the contrast between politics in the United States, Pakistan and Kenya. This made me appreciate all the more, the friendliness of people that I visited.

Back at Edwards headquarters in Claremont, things were hopping. Edwards visit in the early morning had gone much better than expected. Word was that Obama had a great gathering later in the morning and Bill Clinton was coming in the afternoon, but interest seemed muted.

Now, we are back at Kim's brother's house. We are tired. Kim is making a special dinner for all us, in part to thank her brother and his family for their hospitality and in part to replenish and reinvigorate us for a busy day tomorrow.

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The Claremont Decision



The Tumble Inn Diner, originally uploaded by Aldon.

For years, the people of New Hampshire have argued back and forth how to fund an adequate education for every child. These discussions have ended up in the New Hampshire Supreme court, and have been known as the Claremont Decisions. Tomorrow, the people of Claremont will go to the polls to decide on who they want to be the Democratic standard bearer.

This morning at 6:30, Sen. Edwards stopped by at the Tumble Inn Diner to make his case to the people of Claremont. Even at 6:30 in the morning, the diner was packed with crowds overflowing outside. Afterwards, there was a brief press availablity and now Sen. Edwards has headed off to his next event in the action packed day before the primary.

For more pictures, check this set of pictures on Flickr

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