Matthew Wall: 'an analogue mind in a digital world'

Virtual worlds - real money?

With Habbo Hotel, the virtual world (VW) for teens, now boasting nearly 10 million unique users a month, it's clear that some VWs are making real money.

Disney was quick to spot the trend and snapped up Club Penguin, the VW for pre-teens, for £375 million. It, too, is doing well, as is the VW bellwether, World of Warcraft.

But what about VWs for grown-ups? Yes, we have Second Life, sometimes cruelly dubbed 'Get a Life', but the general feeling is that VWs are still too big, clunky and complex to break through to the adult mainstream, whether for leisure or business. Most people just don't have the time or the inclination to spend hours finessing their avatar's hair style.

This is why Google's entry into the 3D space with its 'Lively' in-browser VW-lite application is interesting. It signifies a general move towards thin-client 3D in-browser applications that don't need big download times. For the 3D web to take off it has to be instantly accessible.

But why 3D anyway, with all its extra development costs, rather than 2D? Its main appeal seems to be the ability to interact simultaneously with lots of people in a more visually appealing and intuitively understandable environment. Great for social networking sites, online galleries, expos, that sort of thing. Some developers confidently predict that the whole of the web will be 3D within five years. I think that's going a bit far, but it's definitely a space worth watching.

For a round-up of the latest VW developments read my New Media Age feature 'Get Real' .

Do the Tories have an economic policy?

George Osborne's speech at the Tory conference was a model of 'expectation management'. No money in the kitty = no tax cuts. In fact, it's abundantly clear that the Tories are now preparing the ground for possible tax increases as the economic and financial situation seems to worsen by the day. But what exactly is Tory economic policy? Do they have one? What are their fiscal plans? How would they act differently - if at all - to stabilise the markets if they were in power? I take a look at the detail behind the rhetoric in my feature: 'Will the Conservatives rescue the economy?' on Sky Money.

Banks: who's next for the chop?

 

Isn't all this panic about financial markets and the potential collapse of the banking system a wonderful advertisement for the benefits of mutuality? Building societies, that is. No shareholders. No dubious derivatives wrapping up dodgy debt. Just solid lending based on a sensible proportion of your deposits. Simple. So if you want to keep your cash safe, stick it in a building society, preferably the Nationwide - it's the biggest. Meanwhile you can play a game with me. It's called 'Which bank will go under next?'.

The pound in your pocket...

Conference season is usually a time of lavish promises and grandstanding by the political parties. So what have they actually said and promised on fiscal matters? Are there any policies to back up the rhetoric? How will voting one way or the other affect the pound in your pocket? I try to answer these questions in my piece: 'Which political party will save you the most?' on Sky Money. Of course, I like to believe that such selfish considerations are not the only basis for political allegiances, but I fear that in the current climate altruism is likely to be in shorter supply. 

Property investment clubs under scrutiny

  

I've been investigating two related companies involved in the buy-to-let property investment club business - Inside Track and Instant Access. The banner above is taken from the Instant Access website and will elicit a hollow laugh from the many investors who've lost hundreds of thousands of pounds in their dealings with these companies.

Investors would go along to property investment seminars, receive the hard sell brainwashing treatment, then sign up to invest in off-plan properties in the US, Spain and the UK -  supposedly at significant discounts - the promise of instant riches ringing in their ears.

Needless to say rental incomes and property values failed to match up to the hyperbolic claims made at the seminars. But were these claims deliberately and knowingly misleading? Was there an intent to defraud? To what extent are the investors to blame for being credulous and greedy? These are the questions that will need to be answered as and when disgruntled investors bring their cases to court, as several are intending to.

Inside Track has gone into administration owing nearly £10 million. And guess who the biggest creditor is? Instant Access, to the tune of more than £8 million. HM Customs and Excise is particularly keen to know what has happened to the money, as are the administrators and creditors. 

The wider issue is that property investment clubs like these are not regulated by the Financial Services Authority - a glaring omission decried by the excellent Vince Cable MP, amongst others. This is what he told me:  

"I think these property investment clubs have dangerously contributed to the bubble in the UK housing market and elsewhere. They are thoroughly unhealthy and the seminars are appalling. These companies should be acting ethically and they are not.

"I have in the past sought action from the Financial Services Authority (FSA) to regulate these property investment clubs and provide a framework of consumer protection. But the FSA largely misunderstood how dangerous these clubs are and decided not to do anything. I think it's time we approached the FSA again."

It is indeed.

Read my stories about Inside Track and Instant Access on the Interactive Investor website.

Are you two weeks from disaster?

 

This economic downturn is revealing the frailty of our debt-based culture - a culture fostered and nurtured by successive governments keen to keep consumers spending and corporate taxes rolling in. So many of us have got used to living on the never never and relying on rising house prices as a 'get of jail free' card that we've forgotten to save much for a rainy day. Now the debts are being called in, that rainy day is here - literally and figuratively. Recent research shows that some people could only last two weeks on their savings if they lost their jobs or had to give up through ill health. A sobering thought. Read my analysis of the current situation in 'Are you two weeks from disaster?'  on Sky Money.