online games, multiplayer games
Simcountry is an Online Digital World where you are the President of a country.
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What is Simcountry?

Recent changes to the debt system (Kebir Blue)

Simcountry: Simcountry Bulletin Board  Recent changes to the debt system (Kebir Blue)

Khusru Anushirvan (Kebir Blue)

Monday, December 20, 2004 - 05:00 pm Click here to edit this post
The recent debt changes seem to make this game less realistic, and that cannot be good.

"we are planning reductions in the max debt corporations are allowed to have." This is just not how credit really works. The new mechanisms are sending up "high debt" warnings for corps with 50% profit rates and interest rates <3%. These are not consistent signals. Do the designers just personally favor equity over debt, or is there some economic theory they're working from?

The riskiness of debt should make debt more expensive, and THAT is where credit limits come from. "The inheriting of debts is now unlimited." So when can a lender lose money on a loan? Is the reset system somehow undermining "market discipline" in a way that prevents credit markets from functioning in the game the way they do in developed economies?

I know the economic model isn't as interesting to the warmongers, but W3C must be discussing the economic changes with somebody, right? Maybe even somebody who studied economics or finance?

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