Stock Market - Volatility Update

The current stock market works well for players with sub-50b net worth as they can simply buy the benefit blocks and sit on them. The nerf was very impactful for the >50b crowd though. Of course, no one is going to shed a tear for the "rich" people who have lost one of the last interesting things to do in the game.

However, when you look a bit deeper, Ched's nerf of the stock market is not without consequences. To understand this, lets back up to the main purpose of the stock market - to tie up player's money. Players were enticed to sink their money into the stock market in return for benefits and potential price appreciation. This arrangement kept excess cash from floating around the economy causing inflation and other problematic effects.

Now that players have come to the realization that even smart trading is likely to only earn 20-25% per year, they are asking themselves "where can I get a higher return with less risk?" Players have, and will, likely move to these revenue sources:

• Creating, buying, and renting private islands in droves, thus driving down rental prices and unbalancing the rental market.
• Creating more companies, leading to worker shortages, lower individual company income, and massive inflation (the company system pumps more money into the game than any other input - more companies, more money creation).
• Buying up items. Players have already noticed how higher end weapons have become out of reach for most players. Players likely will start hoarding items as they may appreciate, thus driving up item prices (aka inflation).
• Creating more cache farms to replace "lost" income, which weakens the faction system, and results in more negotiated ranked wars.

I'm sure there are other unbalancing effects too. The point is, the money is going to go somewhere if it is not enticed to stay in the stock market. It sure feels like the changes in player behavior that this nerf has caused, and will continue to cause (at probably an accelerated pace), were not properly considered. I would also note that much of alternative uses for cash don't involve risk. You are supposed to get paid for risk, no?