No, the Linden ban on fake "banks" that offer high interest rates and other such events in-world has nothing to do with a banking crisis. The problems and panic at JT Financials either.Why? Because, as I have written in this newspaper last year, no banking has taken place with these institutions. There was nothing but an old-fashioned scam to take advantage of people's innocence in SL.
For some reason that I never understood, there were people who deposited money and who thought that their "banks" were legitimate. Did they fall for the promise of "high risk, high return"?. Did they fail to realize that 0.15% interest daily means almost 55% annually, a kind of unsustainable interest rate? No matter what, this kind of investor behavior shows that rules have always been and always will be necessary in finance. It is not because finance is bad, or that even finance in SL is bad. It is because a skilled minority will always look for ways to pig out with people's savings. It is a human condition.
As for what this could mean for Second Life and Linden Lab, this is a first step forward in terms of financial credibility. But for heaven's sake, why did they wait so long to act? How could the Lindens fail to step in earlier when some of their honest citizens were exposed to highway robbery?
This question remain unanswered.
I hope they will set up an official governing body called the SL Exchange Commission.
