Ending  a Virtual World Experiment $80 Billion Later

The move away from the virtual world of the Meta universe was announced several months ago in business news updates such as  this  WSJ December 4, 2025 article excerpt:

The decision marks a sharp departure from the vision Zuckerberg laid out in 2021, when he changed the name of his company to Meta Platforms, from Facebook, to reflect his belief in growth opportunities in the online digital realm known as the metaverse. Meta has seen operating losses of more than $77 billion since 2020 in its Reality Labs division, which includes its metaverse work.

This investment was to be the future growth engine for the company.   There was much consumer buzz around the Oculus and  Quest extensions of  virtual reality glasses.   Public discussion of virtual worlds including actual  sales of real estate in these virtual landscapes were widely portrayed as the next big investment opportunity. People could now anticipate creating virtual avatars of themselves and even virtual friendship companions.

The metaverse was launched four and one half years ago.  Now Meta’s  Horizon Worlds VR platform will be closed on June 15.  The app will no longer be available.  No more virtual futures to escape to from this real world.

An $80 Billion Loss

One article estimates that the Meta division responsible for VR and metaverse development has accumulated nearly $80 billion in losses since 2020. In the fourth quarter of 2025 alone it posted an operating loss of more than $6 billion.

The next frontier for Meta is now AI. What does Meta’s strategic misadventure mean for credit unions?   What lessons might be inferred as the entire technosphere rushes to spend hundreds of  billions in the data centers which will support multiple AI applications?  Are there potential warnings about other virtual creations especially in the area of stable coins, tokens and bitcoin financial products?

If an $80 billion investment can fail in an established company with hundreds of millions of online media users, what does that suggest for credit unions investing millions in new fintech and virtual products touted as the next frontier of finance?

Some Lessons

While there were product and creative shortcomings with Meta’s initiative, I believe there are larger lessons for credit unions.

  • Scale, open ended funding and an operating track record by a successful organization does not guarantee innovative outcomes.
  • A consumer or business market, even one already served, does not automatically embrace ideas or extemd its relationships.
  • Product value for users matters still. Virtual reality was seen as a logical extension of simulation exercises (think pilot training) and consumers’ embrace of video games for entertainment.  An assumption that did not prove out.
  • It became the company’s primary strategic focus and public identity including a corporate rebranding to Meta. Zuckerberg made it a personal priority as the historical core business of Facebook revenue funded the experiment.   No matter how dominant or innovative a firm tries to be in one market, diverse business options protect from a strategic miscalculation.  Should a CEO’s ambitions be the primary factor in a strategic change of diection?

I am not a gamer and have not tried VR.   Readers who have this experience may have their own to add.

However there are examples where credit unions bet the farm or lost significant corporate momentum from an initiative that looked plausible, but failed.  One needs only look at individual 2025 yearend performance outcomes for immediate examples.

There is always great interest in the next big innovation affecting the financial services industry or the members of a credit union.   Today the two big things are the use and impact of AI and the expansion of virtual finance products such as stable coins and alternative investments.

The final takeaway from Meta’s shutdown is that perhaps there is more life in traditional business models even as one experiments with the next big idea.  Even AI.

 

 

 

Observations to Start the Week

Working on several projects not yet ready for prime time, so will share several thoughts.

From a GAC presentation on credit union’s super power-but is it just credit unions?

  • NY Fed bank President at the GAC 2026:  Regarding the affordability crisis, Akin asked Williams to explain what role local financial institutions play in supporting resilience, to which he answered that, as local institutions, credit unions are better positioned than anyone to support families through economic hardships due to their community roots.

“One of credit unions’ superpowers is that you’re connected to your communities,” said Williams. “It’s the fact that you’re part of the community. You understand the local conditions, the economic challenges, and the opportunities.”

  • The personal advantage of local even in war: When Ukraine was invaded and what gave most comfort:  I met up with my colleague at a metro station deep underground and walked to his apartment. Never had I known how comforting the presence of familiar people can be when everything is so uncertain.

 

  • Mergers should all be required to present  independent appraisal of the combing credit union’s market value before members vote on turning over control to a third party.

 

  • We have had many internal conversations  about whether we would change our mission if we were taxed.  And for the moment, the threat of taxation would not change our “reason for being.”  But I am also realistic about the fact that conventional credit unions don’t care about “mission” but rather about “growth.”

 

  • Garrison Keillor’s humor:  How many philosophers does it take to change a light bulb? “Define light bulb.” And the one about the student who got an A in philosophy by writing a paper proving that his professor didn’t exist.

A Late Night Walk on NYC’s 5th Avenue

Walking along 5th Avenue in NYC several weeks ago, I stopped at a store that had a roped line to enter.   Joan and I thought it must be a restaurant or a nightclub.

We decided to find out what twas going on. It turned out to be a recently opened Lego store.  Here is some of what we saw.

A New York City Taxi

The Statue of Liberty

A Lego tree in the main showroom.

A life size jolly green giant:.

Back to the real world. The Zamboni cleaning the ice at the Rockefeller Center skating rink.:

 

America Today -Is This Who We Want to Be?

Yesterday’s thought was:   What is more important — what you stand for, or who you stand with?  Here is one person’s response.

The Visit to a Detention Center

Walking into a detention center is a surreal experience. You hand in your driver’s license, sign paperwork, lock your belongings in a locker and pass through a metal detector with your shoes off.

No cell phone, no identification, no wallet.

My heart beat fast as we were escorted through the locked metal doors and waited to be let onto the unit where we would meet with the detainees one at a time in a small airless room.

The names, faces and stories of the people we met over the course of several days- 10 people in all- are deeply etched into my heart. This was a rare opportunity to accompany an immigration lawyer and his team as we visited two centers, one in Massachusetts and RI.  We saw first-hand what conditions are like and listened to the stories of those suffering in detention…

The Center

As you can imagine, a detention center is a haunting place devoid of warmth and humanity. It seems to me it is the loneliest place in the world. It opened my eyes to just how terrible the reality of what the Administration’s policies and practices have led to…innocent people being locked away.

Families destroyed.

Human rights trampled.

Trauma inflicted over and over again.

The “Industrial Detention Complex” is in effect a harsh landscape of prison “camps” that house hundreds of people -most of them people of color -locked away in buildings wrapped in fencing and barbed wire up to the sky.

While the two places we saw were clean enough, the structures are cold and sterile looking, made of cement blocks, filled with harsh lighting that is on 24/7, few windows, endless hallways and heavy, locked doors.

The clanging of keys and the shutting of iron gates is the sound that remains with me.

The Detainees

I found out that the people we met with who are held for days or months are granted no privileges-unlike other prisoners who can take classes, etc. Folks are held in their cells-which are cages really for 23 hours a day. Maybe they get outside briefly, probably they don’t. There are no programs or classes or activities for them.

One man we met mentioned his idea of starting a group teaching others how to speak English. Our lawyer was encouraging him to do that… this activity would give him something meaningful to do and help others…

Health care, we learned, is abominable or largely non-existent. Receiving medication takes a lawyer’s advocacy and it might be weeks before one can get any lifesaving medicine for diabetes or HIV or blood pressure.

I remember sitting next to one person named Jose (not his real name) as he told his story and added that detainees aren’t allowed to receive any mail. Oftentimes the internet is down or the phones aren’t working. Jose missed his family; his kids and he started to cry when he saw the sticky note the paralegal had written after visiting his wife the week before. Even though it wasn’t his wife’s handwriting, the man held it like it was a piece of gold.  It said, “We miss you; we love you.” . . .

During these meetings, we did our best to bring some humanity in with us. Smiling to guards, saying thank you, introducing ourselves, learning their names. The guards seemed friendly enough.

Our lawyer asked questions about the person’s story, their early life, how they came to this country, what they did for work now, who was in their family and considerations for possible strategies for attaining bond and release.

Everyone’s stories were complicated. Of the 10 people we met, all of them were men, fathers, partners- most had fled dangerous conditions in their home countries, crossed the border, asked for asylum, had painful family fractures and hardships. Some had been in this country for decades or just a few years.

One was still a teenager; another was a grandfather. Still another, a DACA recipient.

Comforting

I tried to be as present as possible. To offer whatever small kindness I could and to listen with care to the person in front of me as we gathered around a small table and sat in plastic chairs. Sometimes, after the interview with the lawyer, I was able to offer a kind word or a prayer. Or to put a gentle hand on a shoulder when the sobs came.

While our paralegal translated, I prayed,

Dear God, Dios Mio,

May this person be safe, May this person be released soon. May this person know how beloved they are of you and their family. Oh God.  Help us! Gracias, Amen.

My meager gestures felt woefully inadequate (compared to the enormity of the fear and uncertainty of what each person was facing every minute of every day.)

Unknown Fates

One man, when presented with the reality of imminent deportation to a country he’d never been to before, hung his head in his hands and cried, “How can I go there? I don’t know anyone there?”

Often, without notice, detainees can be whisked out of New England to detention somewhere down South sent even farther away from family and connection. Where are the women? I asked. Apparently, they are sent “elsewhere” perhaps to Louisiana or Texas.  If they don’t have legal counsel, locating them can be like looking for a needle in a haystack.

When our time with each person drew to a close, we shook hands, sometimes hugged and a guard escorted them down the hallway. Before returning to their cells, a further humiliation awaited them- a strip search behind a makeshift curtain.

Were they being penalized for seeing their lawyer? It sure looked that way!

Believe it or not, immigration I learned is a civil matter not a criminal one. Let me say that again: immigration is a civil matter not a criminal one.  The thousands who have been imprisoned and deported have been convicted of no crime. And even those who have entered illegally, the law classifies this as a civil matter, a “misdemeanor.”

Journalist Jamelle Bouie wrote recently, “Immigration detention is not a criminal procedure. And yet the Trump administration is treating it as a criminal punishment. It is using detention to inflict pain on anyone — immigrant or citizen — caught in its grasp. It is subjecting detainees to horrific conditions of deprivation and abuse, meant to pressure people into leaving the country, even if they have valid asylum claims or even legal status. And the administration is trying to expand its system of internment camps, purchasing warehouses across the country meant to hold tens of thousands of people”[1]

The Privilege of Being Free

At the end of one very long day of visits, having been inside for 5 hours, we walked out the doors to the fading sky at twilight. The pink horizon softening my ragged heart and I filled my lungs with deep breaths of air.

It hit me, the relief and the privilege of being free. Right across the street from the Detention Center was a Home Depot, a Panera and new apartment buildings. I wondered if all of those people sitting in their cars in traffic had any idea what inhumanity was taking place behind those front gates?

On the long drive home, I recalled how all of the people we met were Black or Brown folks. People of color who on this particular day were from Central America, Mexico and Haiti. . .

A  Community Bearing Witness

In this season of Lent . . .one holy question to ask ourselves is how are we resisting the dangerous, false narratives of immigrants that have been presented to us and instead see and uplift the humanity and rights of individuals? . . .

It is comforting to know that we as a church community are trying everything we can to support those caught up in the midst of this Super Storm of Inhumanity. That we are learning from what communities in Minneapolis have done to support those most vulnerable.

We are in the right place as we meet this moment together!

Bearing witness to one another’s stories and lives. . .

Bearing witness to the truth of the injustices our neighbors are facing by standing up in the public square in the pouring rain. . .

How have you borne witness to the life of another? What might Love say to each of us as we try to find our way through the stormy wilderness?

Let us keep going over to the other side, my friends.

Love shall prevail . . .

By Rev. Laura Fitzpatrick-Nager (February 22, 2026, The First Congregational Church of Old Lyme) Texts: Exodus 23: 9, Mark 4: 34-41  Minor edits by Chip Filson from original text at https://fccol.org/february-22-2026-sermon/

 

Today The People are the Press

Yesterday’s scripture reading was from the Sermon on the Mount. The lesson includes Jesus’s multiple teachings (Beatitudes) beginning with Blessed are the meek. . . Blessed  are the poor in spirit….

On the sign in front of the church, the  sermon title was Blessed are Those Blowing Whistles.

Individuals are doing more than making noise. People are recording and publishing videos, interviews and pictures of federal troop immigration occupations-and the resulting abuses and cruelties -in towns and cities across the country.

Citizen Journalists

The people have become the press, taking their first amendment rights of freedom of speech seriously.  They have used virtual channels and networks to post their stories and pictures.   It reminds one of the pamphleteers during the Revolutionary War.

But citizen journalism is not limited to tracking immigration abuses. Individuals are finding ways to raise concerns about their credit unions.

I am a three decade member of XYZ Credit Union. I was shocked by the proposed merger with YYY which was sprung on our community and membership without warning or advance notice.

I attended the annual membership meeting and there was zero mention of this. The Board of Directors has acted in secrecy and this sellout is now presented as a done deal.

 These kinds of deep worry are sent to my blog address two or three times per month.   Sometimes the opening will begin: As a former employee and long-time member of XXX I am deeply concerned about . . .

These members want to know how to amplify their voice.  And that is the first goal of the member-journalist, to make their concerns public and bring transparency to situations.

Several CEO’s even embrace these individual voices.  One publishes Net Promoter Score comments in the monthly staff update, but not just the 9 and 10 ratings, also the 4s and 5s which are often complaints about a service, policy or  member disappointment.

The credit union press primarily relies on the publicity releases of the industry.  Rare are the occasions for member comment except when picked up from a news story.  Or very occasionally from member comments opposing mergers.

Both credit union media as well as the public press rarely have the resources to pursue individual cases of self-dealing orworse.

Democracy Requires Speaking Out

In a democracy, and especially in organizations claiming to be governed by their members, they will find ways to speak out.  It is the American way.  And ultimately it will lead to organized opposition should their concerns be ignored.

With the emergence of local digital media, these stories are now receiving greater coverage. Here is an example from the Baltimore Banner, an online non-profit news source for the greater Baltimore community.

Project Salt Box: How citizen sleuths are monitoring ICE in Maryland

First they unearthed U.S. Immigration and Customs Enforcement contracts for 42,000 ready-to-eat meals coming to Maryland. 

Then they built data map of how the federal Department of Homeland Security was distributing its funding.

Last week, two-month-old Project Salt Box and its seven-person team revealed what some say is a sign that an ICE surge could be coming to the state.

The group, which works to unearth and explain the public documents behind federal immigration enforcement, was the first to report on Tuesday that DHS had purchased a warehouse near Hagerstown. In correspondence with Washington County officials, federal officials described how they could retrofit the space to become an immigration detention facility. . . .

The American citizenry is finding its voice.   It will not wait for elections.  Rather it will seek to change leaders’ behaviors now.

Credit unions were nurtured in the grassroots of local activism.  They found sponsor support to create new collaborative options for their community.

This latent activism is just below the surface.  In the transfer of hundreds of millions of member equity and billions of assets to third party control, their voices will rise.  And they should.

Blessed are those cooperators who use whistles of words to rouse their fellow members to stand for economic justice for all. Future generations will honor them.

Icy Snow Days

Last three nights the low temperature was in single digits: 6 degrees.  High during daytime is in mid 20’s.  No melt at all.

Schools still closed.  Roads open but too cold for kids to walk to school.

Potomac started to freeze.  So you want to be careful about using the phrase, “Until hell freezes over”-it could happen.

Ice on snow, hard as iron.  Only way in or out.  Even mailman missed two days.

A Japaese snow lantern in its true setting.

Roads open, but snow on sides will be there for weeks.  Solid ice.

A local ice fort.  Note how walls have been made like  stone slabs.

Cleaning walks and porches is a three person effort.  Snow blowers no good on ice packed snow.  Use dirt shovels. spades and even pick axes.  Normal snow shovels not strong enough, laying on ground.

Essential work.

No tennis today.  Have to go to Florida.

Plant covers could save some bushes and flowers.

But power is still on in area.  Just need more hot air.

For This Weekend’s Snowmaggedon

  1. The Harvard Kennedy School just put out an online course, completely free, to help you understand the science and implications of AI, including video lectures, slides and case studies.

Here’s the link.

2. Explosion of new banking applications at OCC.

This BankingDive article says the eighteen new charter applications in 2025 exceeds the total of the prior four years.

Applicants include Nissan and PayPal for industrial bank charters, the license that Thrivent FCU converted to in 2025. (link)

Other applicants include fintechs such as checkout.com.  Six applicants have received conditional approval.

The article includes this quote from the OCC head:

Gould has said the influx is “a return to the norm” for the agency, and that it “signals healthy competition, a commitment to innovation, and should be encouraging to all of us.”

3. Tired of News about Greenland’s Future?

Here is an AI generated video about the Greenland’s territorial defense force that should put to rest  all US concerns.  Composed by some cheeky Irish balladeers.

(https://www.youtube.com/watch?v=KOpymCZ0PAU)

Have a productive weekend watching or shoveling the fluffy white stuff.

The Battle Hymn of the Republic

American democracy has a unique capacity for creating and then honoring martyrs for its freedoms.  This weekend we celebrate one person who gave his life for our professed ideals.

This vigil honors a current person’s sacrifice.  It is a community gathering to  remember a woman who also believed in America’s promise.

One of America’s most powerful patriotic anthems was written by a woman Julia Ward Howe in 1861.

For the persons gathering above, they will sing, as she died to make us holy, let us live to make all free. 

Renee Good’s truth will cause millions to march on.

A mother of three.

Went on a christian mission to another country.

Stood up for her neighbors with whistles.

Was shot three times by a federal government employee, gun in one hand, cell phone in the other.

She made herself vulnerable to protect the vulnerable.

A presbyterian who followed her conscience with faith.

In death, she  inspires hope and conviction in us.

Power cannot silence her witness.

Her name will call forth the best that America represents.

And the ideals that its citizens will sometimes die for. Unasked and never forgotten.

She was indeed good.

The Gift That Matters

One of the joys of the holiday season is receiving cards and messages from friends near and far.

These life updates tell of the many family ups and downs of our generation.  Occasionally they include special words of insight.

The following is an annual poem created  by husband Joe for his wife Zuki.  It reflects on the traditional effort to find just the right Christmas present, which is the same theme in O Henry’s short story The Gift of the Magi.  

The final stanza honors the most important gift we have, which is each other.

I Gave  You a Walking Stick

by Joe McLaughlin

I gave you a walking stick

Like the one you used to own,

And you gave me two turtlenecks

Like the ones that I’ve outgrown.

 

And so our Christmas gifts this year

Were ones each knew the other needed

Not new additions to our store

But useful ones that we’ve repeated.

 

O’Henry’s lovers’ gifts were rare

 But useless, which was their surprise.

Though they were young, they learned that year

How foolish love confounds the wise.

 

Our useful gifts are small but add

To what we can’t have too much of,

 For years behind and years ahead,

Reminders of our life-long love.

 

            Christmas Day, 2025