| Forum » General » deposits capped 7% | Date | |
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Dee12345 said: Put it this way - The less incentives I have for deposits = Higher price rises for you (because more money on the market, and less in bank), and the less likely you are to compete with managers. Me making 9.985% on my deposits make me want to keep them. Me being capped at 7% makes me want to spend that money on big name players = Higher inflation. Adding more money for new teams defeats the purpose of capping deposits in the first place. Well said, though I feel like this could be because a lot of newbies are putting money into deposits instead of investing in more profitable things like stadiums. My first season i made a whopping $145,000 off of my deposits, while if I had spend that money in the bank on more stadium upgrades, I would have been in a much better position long term. I don't think it makes as much of a big impact on the upper tier teams that have more money than they know what to do with, but I do think it will be interesting to see what it does to teams in division 3-4. |
23/06/2012 02:10 |
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Nothing interesting about it dude! It's just going to make people less likely to say: I'll wait before I buy. With prices constantly going up, we're now getting less interests on deposits - So rather than allow the purchasing power of your money to diminish, it would be better to simple spend spend spend. Because the one thing this game really needs is MORE money floating around the higher divisions. This has been said over a season ago - The game is in danger of becoming a two-tiered market. According to @Ranru, the reason why deposits are being capped is because it's 'too easy to make money'. And they want people to make money through 'buying and selling'. Ok, so this just gets even more ridiculous - Because now there will be a lot more money floating around for transfers and hostiles. Most of the top teams in this game have large deposits. Cash injections by these guys into the SM economy is not always a good thing - It just leads to more price rises. I wrote an entire thesis on the economic issues surrounding this game - It seems the developers didn't even bother skim reading it. I said this time and time again. Money in deposits are essentially 'locked-in'. They don't contribute much to the inflation. I primarily keep deposits as the interest pays out the moment weekly expenses come out. - This eases the burden of my weekly expenses. A decision that has clearly not been thought through. This game revolves around buying and selling. Infact, many managers have complained that this game comes across more as a 'buying and selling' sim than a football management/tactics sim. Believe me, this game really does not require any more encouragement for people to 'buy and sell'. |
23/06/2012 03:05 |
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I prefer a short term deposit to a long term!? Inflation all the way?! |
23/06/2012 03:10 |
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Dee12345 said: Nothing interesting about it dude! It's just going to make people less likely to say: I'll wait before I buy. With prices constantly going up, we're now getting less interests on deposits - So rather than allow the purchasing power of your money to diminish, it would be better to simple spend spend spend. Because the one thing this game really needs is MORE money floating around the higher divisions. This has been said over a season ago - The game is in danger of becoming a two-tiered market. According to @Ranru, the reason why deposits are being capped is because it's 'too easy to make money'. And they want people to make money through 'buying and selling'. Ok, so this just gets even more ridiculous - Because now there will be a lot more money floating around for transfers and hostiles. Most of the top teams in this game have large deposits. Cash injections by these guys into the SM economy is not always a good thing - It just leads to more price rises. I wrote an entire thesis on the economic issues surrounding this game - It seems the developers didn't even bother skim reading it. I said this time and time again. Money in deposits are essentially 'locked-in'. They don't contribute much to the inflation. I primarily keep deposits as the interest pays out the moment weekly expenses come out. - This eases the burden of my weekly expenses. A decision that has clearly not been thought through. This game revolves around buying and selling. Infact, many managers have complained that this game comes across more as a 'buying and selling' sim than a football management/tactics sim. Believe me, this game really does not require any more encouragement for people to 'buy and sell'. I edited because I thought Shut up was more appropriate  shut up with your John Maynard Keynes economics. TAX THE GODDAMN POOR ALREADY !.. Lower the interest rate to 4%. The sooner the market crashes the faster we can get back on track.. I'm joking friend.. I don't know how many threads there are already. God, Please dont get me on my soap box because I will wrap some heads around World war 2 economic policies that are so crucial to inflation that we could spend the whole night. Edited by cmccourt 23-06-2012 03:11 |
23/06/2012 03:10 |
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How i wish i joined the game earlier,i could have been one of those billionaires. | 23/06/2012 03:13 |
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Many teams are using multi-billions deposits to support very high salaries of players to prevent them being hostiled. Those players are not suddenly going to spend all their money, Dee. They will actually have to invest more in deposits to do this, so it could actually take money out of the game by encouraging larger deposits at the top. This may well be balanced out by poorer teams spending their money, but let's be honest: it is a good thing when poorer teams spend money on players or stadium or schools rather than deposits. All of these things have a much higher rate of return than deposits, and the two good long-term reasons for deposits, supporting high salaries and holding money while you save up for a big purchase, are unchanged. I doubt we will see the rampant inflation you're predicting for these reasons. At worst the withdrawals by poor teams will be balanced by increased deposits of rich teams. |
23/06/2012 08:52 |
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Yes,its somehow balance.thanks @cellog. | 23/06/2012 08:57 |
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I agree @celloG, we shall see how this all turns out going forward into the seasons, but your worst case scenario doesnt for tell the outcome of the system 3 seasons from now. Its based off weather or not it handles the current situation going into season 7 which I will say, I dont think we will see any disadvantages come to light at this moment because it will have to be a few seasons until we see how this marketplace reshapes itself and thats as long as no more decisions like with interest rates or creating or higher and lowering a tax or fee , realesing bot players more often, creating more high prog juniors, faster increases in training, etc, etc. But, in the end, its good to know things are being done and voices are being heard so thank you. |
23/06/2012 13:20 |
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Infact am pleased as long as the market will take a new shape.enough money in the game. | 23/06/2012 13:29 |
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@CelloG said: Many teams are using multi-billions deposits to support very high salaries of players to prevent them being hostiled. Those players are not suddenly going to spend all their money, Dee. They will actually have to invest more in deposits to do this, so it could actually take money out of the game by encouraging larger deposits at the top. This may well be balanced out by poorer teams spending their money, but let's be honest: it is a good thing when poorer teams spend money on players or stadium or schools rather than deposits. All of these things have a much higher rate of return than deposits, and the two good long-term reasons for deposits, supporting high salaries and holding money while you save up for a big purchase, are unchanged. I doubt we will see the rampant inflation you're predicting for these reasons. At worst the withdrawals by poor teams will be balanced by increased deposits of rich teams. 1. Having to put more money into deposits is a short and medium term scenario. One it levels out to the required rate of weekly interest being paid out, the issue will continue. Thus, it will temporarily take money out of the game - Over the long term, it will encourage spending. Like in any economy, when inflation is rising, interest rates must rise. When inflation is very low, then interest rates will stay low. High interest rates = More saving and less spending. Low interest rates = Less saving and more spending. Of course, this is over the long term, and inflation is a long term issue, not a short term one. 2. Poorer teams are irrelevant when it comes to deposit interest rates in the grand scheme of things. A Division 5 Team with £50 Million will probably spend 25 Million on players, 20 Million on stadium, and the rest will go to expenses etc and then the remainder in deposits. 3. If the long term reasons for holding deposits are unchanged - Then what is the point in capping interest rates? Surely that defeats the purpose? All this does is require the richer teams to hold slightly more in reserve. A Billion in deposits at a rate of 10% = 100 Million over the course of the season. at 5% = 50 Million 7% = 70 Million So in effect (from the current rate), a team loses 30 Million per 1 Billion invested. I think that hardly stops these teams abilities to hold deposits to pay out large scale salaries. The issue isn't so much of what people do with their money, it's the actual money that they are MAKING. It seems the developers do not have a clue about economics, because having spoken to @Ranru (when he popped up on General), he indicated that the deposit rate was capped for the reason you stipulated, but also to encourage people to make money by BUYING and SELLING - Not by hoarding deposits. This is nothing more than a band-aid that quite simply, will not work. The Spanish server has all kinds of money issues. They are in Phase 3 of the issue. (I would recommend somebody go there to see what money is like). We're in Phase 2. And Brazil Server is Phase 1. Surely the better thing to do would be to stop us from heading in the same direction as the Spanish Server, rather than patching things up here based on issues over there? As I wrote in my paper, this game is in a unique position compared to the economies of many other games. Because of it's human interaction and market place, it has a market like in REAL LIFE. As such, the same incentives, and barriers used to regulate a real economy must be put in place. To put it bluntly, sooner or later, that inflation WILL take place. The deposit issue won't be the sole/primary contributing factor, but it sure as hell doesn't help. Edited by Dee12345 28-06-2012 23:46 |
28/06/2012 23:43 |
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