Comments on: Quick “New Policy” Observation http://sl.webfeedcentral.com/2008/01/11/quick-new-policy-observation/ Strange Ranger's Stage for Opinions on SL Sat, 22 Nov 2008 03:12:55 +0000 http://wordpress.org/?v=2.6.2 By: Anna Tsiolkovsky http://sl.webfeedcentral.com/2008/01/11/quick-new-policy-observation/#comment-543 Anna Tsiolkovsky Mon, 21 Jan 2008 02:16:34 +0000 http://sl.webfeedcentral.com/2008/01/11/quick-new-policy-observation/#comment-543 You're right, the gambling ban did start the beginning of the bank run. Ginko's could afford their interest rates in part because they invested in casinos, and when they went, so went the investments. It wasn't immediately obvious until people started attempting to withdrawl and started noticing that their deposits weren't growing with interest. Thus began the massive rush to withdrawl while the going was still good, and we both know how the story played out. From the general trends so far, some banks are defaulting, some are offering to return all deposits, some are offering the same service sans interest (the language of the ban concerns only interest payments and not simple "I'll hold your money" deals), and some might go underground (which some casinos did after they were banned). The interesting thing is that unlike gambling, LL announced this policy some time before they actually implemented it which should put to rest this debate other whether it's better to suddenly enforce or give prior warning. Judging from the relative, and I use that term loosely, calm concerning this so far, I think either people don't realize what exactly is going on or it is being handled by people in a surprisingly adult manner. You’re right, the gambling ban did start the beginning of the bank run. Ginko’s could afford their interest rates in part because they invested in casinos, and when they went, so went the investments. It wasn’t immediately obvious until people started attempting to withdrawl and started noticing that their deposits weren’t growing with interest. Thus began the massive rush to withdrawl while the going was still good, and we both know how the story played out.

From the general trends so far, some banks are defaulting, some are offering to return all deposits, some are offering the same service sans interest (the language of the ban concerns only interest payments and not simple “I’ll hold your money” deals), and some might go underground (which some casinos did after they were banned). The interesting thing is that unlike gambling, LL announced this policy some time before they actually implemented it which should put to rest this debate other whether it’s better to suddenly enforce or give prior warning. Judging from the relative, and I use that term loosely, calm concerning this so far, I think either people don’t realize what exactly is going on or it is being handled by people in a surprisingly adult manner.

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