redblueamerica.com

It's yesterday's news, I realize, but I would be remiss if I didn't share this story from Wednesday's Wall Street Journal on the economic troubles plaguing Second Life.

The headline caught my attention immediately: "Cheer Up, Ben: Your Economy Isn't As Bad as This One." Turns out, no, the editors weren't talking to me.

Apparently, there's a liquidity crisis in Second Life land. Avatars are running on banks. And real people are losing real money. According to the Journal:

The shutdown has caused a real-life bank run by Second Life depositors. Though some players managed to get their Linden dollars out, others are finding that they can no longer make withdrawals from the make-believe ATMs. As a result, they can't exchange their Linden-dollar deposits back into real dollars. Linden officials won't say how much money has been lost, but a run on another virtual bank in August may have cost Second Life depositors an estimated $750,000 in actual money.

Ouch. But reading on, you encounter the truth of the adage about a fool and his money soon parting:

Steve Smith, who runs BCX bank under the avatar name Travis Ristow, yesterday said depositors -- who are owed a total of $20,000 -- will be able to get their money back next week. The bank, which had promised to pay depositors more than 200% in annual interest, is now allowing only small withdrawals.

200 percent?!? Good lord! Send in the virtual tort lawyers!