August 8, 2007 (LPAC)--An actual bank run, in which real people lose real money, appears to be striking players of the online virtual reality game "Second Life," according to a report in MIT Technology Review.

Players of the game, created by Linden Labs of San Francisco, can buy a currency, called Linden dollars, at an exchange rate of 270 Linden dollars to one U.S. dollar. Investments in the virtual businesses which appear on the web site can then be parlayed into real gains.

Second Life's web site boasts that "thousands of residents are making part or all of their real life income from their Second Life businesses," the Technology Review reports. A chart displayed on the homepage lists US$1,450,478 as spent in the last 24 hours, and notes that 1,646,830 users logged on in the last 60 days.

Some of the Second Life banks offer annual interest rates above 100 percent. One of the banks, Ginko Financial, gained notoriety a year ago amid charges of being a Ponzi scheme. The bank still operates in Second Life, offering a modest 44% annual interest. According to Ginko's website, current deposits total over $750,000.

Technology Review interviewed several economists and financial specialists who analyze the Second Life economy. Word among the Second Life pundits is that a recent decision to ban gambling on the website is behind the run on the banks.

Which will go first--the Linden economy or the real one? It's anybody's guess, but it's not going to be pretty.