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"but carry a gun and don't cry if you get shot."
Wise advice. Yesterday, I was talking with one successful businessman in Second Life who felt that the aspects of fraud were significantly overstated. He suggested that many of the villains everyone loves to hate, are actually try hard to make businesses viable in Second Life.
I agree that a lot of the financial chaos has been caused by the ban on gambling, the decline in real estate prices, and by poor financial decisions or planning. I was suggested there might be a little more fraud involved than he was suggesting. However, it comes back to how hard you cry when you get shot.
The business man had not lost any money in any financial institution collapse. I had lost a very small amount, not enough to be troubled by. Those who are risking a lot, and sometimes losing a lot may well be those that cry the loudest.
My view on investing in financial markets in Second Life is similar to my views about speculative trading in traditional markets. Don't invest what you can't afford to lose.