Saturday, March 15, 2008

Stock Market Madness

Massively, along with Reuters, has a good Second Life news desk. Friday they put up an article asking, "Will the World Stock Exchange ever come back to Second Life?"

I've already talked about so-called Second Life "banks" being little more than fronts for pyramid schemes. It looked to me that after "banks" were banned, the Ponzi schemes moved into fake stock markets. This WSE story seems to confirm that. They closed up in early January to "upgrade their software," promised to be back in 4-6 weeks, and nobody's seen them since!

You cannot have a stock market when the operators of the exchange are also the owners of the companies, the market makers, and the regulators! You cannot have a stock market where there is no liquidity, no transparency, and no accountability. You cannot have a stock market if nobody can go in and short these pathetically undercapitalized, nanocap purveyors of nonsense down to the ground. That's what makes a market.

These are not stock markets and it's not "just a game" when the money is very real - otherwise, poker would still be legal in world. That's why I say money scammers are the real sociopaths of the virtual world, no matter what Wired says about silly griefers.

So if anyone out there has taken thousands of dollars off of gullible residents while making ludicrous promises of dividend returns, and then deposited that money in their real world bank accounts, then quite possibly they have committed a crime, and it will be up to a court to decide if it's "just a game", or high yield investment fraud.

Like it or not, somebody is going to have start policing this stuff or "metanomics" will never get off the ground.

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