Large SL Bank update

I could put forth the theory that people want to be left alone with the "broadly offensive" because, aside from getting your feelings hurt, there's no actual harm done to anyone, whereas with the banking situation there is quantifiable harm done.

Dunno, not involved in either.

Nice one.

*chuckles* Because 'broadly offensive' is a 'moral thing,' while 'fraud' is a 'law thing,' I think. We don't want morals shoved down our throats, but we do want them to enforce the RL law. There's probably a lot of other psychological stuff going on, but that's not on topic

However, this is a very interesting point on why they do try to avoid being specific in many areas of their 'rules.'

I don't see much of a difference...maybe because I don't take SL as seriously as many do...

This can't be compared to a RL bank for one simple reason...you pretty much HAVE to use a bank these days.

You can choose to put your money into a fake bank in a video game just like you can choose to look at (and in some cases "look for" or put up offensive images all over a sim.

I have not been in a situation in SL where I NEEDED/WAS FORCED to put L$ in a bank just like I have not been in a situation where I NEEDED/WAS FORCED to look at naked kids.

Anyone's decision in either matter is or should be based on that person's own moral and philisophical opinions.

Is looking at/making this a healthy choice?

Is putting this big of a sum of money in the hands of a guy I'll never meet (except maybe in court ) a healthy choice?

Seems the same to me the more I think about it...

Business concerns win the day.

When there wasn't much attention paid to the grid, nobody much cared if people played naughty dollies, or how. One might get a 'that's sick' comment but who could take it seriously?

Now, offending content makes the tabloid media rounds whenever there isn't a fire somewhere, and Inspector Clouseau is on the case.

If the grid becomes Ponzi Paradise just like it was Gambling Paradise for a while, you bet the Feds will have a peek and that will threaten the business model. Then you'll see enforcement.

It's *already* not okay to run pyramid schemes and such on the grid.

I'm guessing the Company is worried about another Bragg case, where some duped 'investor' decides it was the Company, not a scammer, that prevented 'recovery of his investment' and sues.

The best thing that could EVER happen to a Ponzi scammer would be: to be banned from SL. "I didn't walk away, I was banned - blame THEM!!!" Eyah. Righto.

I just think people would be upset if we turned over financial regulation to LL now. They'd be wise to keep out of the way and let this guy try to handle it (he seems like he's legitimately trying even if he's making bad decisions) or face international court (which will be interesting to see.)

Coming up next...

Law & Order: International Metaverse Court

I can see what you mean about people being upset if LL set up some financial regulation. They don't seem to have the greatest track record for decision making either, looking back a bit. So, the question would then become after having dealt with (or not) this fiasco, would we really want Linden Labs to try to create some vague financial regulation for Second Life? Because, vague it would be and that would be worse in some ways that completely unregulated.

I agree and think they should stay out of it now. Money is math and math can't be vague!

That would involve people accepting responsibility for their own decisions. If that happened there'd never be any warning threads.

Well, it looks like Ginko will survive as some sort of investment fund. A good portion of deposits have shifted to term. I think the term is one year. The queue for withdrawals is about 40% of what they have left in demand deposits.

So I predict the next run on whatever is left of Ginko will be this time next year, when the 40+ million L of term deposits that have been made in a one week period come due.

If he labels it as "high risk investment fund" then people should get the appopriate idea and despite what he says presently thats not what he was calling it. If he wants to change direction its one thing but the only reason he is changing direction is because he can't survive as a "bank" any longer. He needs to clear the obligations he made to those who looked at it as a "bank" and pay those debts off and those who want to continue in a high risk investment fund can do so. All the doublespeak in the world which was enough to sink a ship in the last few days wont erase the fact that this is a change in direction in order to keep in business and maintain his expensive hobby of borrowing other people's money to play with. Unfortunately he can't pay those who want their money from the "bank" right now and they are being forced to invest even if they dont actually press the investment fund button inside the site. Its either that or nothing really they can invest there or wse not much of a choice really.

ah well such is life people are stil forced to close stores etc while he carries on his merry way doing what he wants. kindy well crappy and not what I would call a good business, but then there is no rule that says you have to be good at business in sl or anywhere there are crappy business men all over the place. One thing is for sure if i were thinking of investing just listening to the guy speak would change my mind.

This is not just a Ginko Issue. There are plenty of other banks waiting to be "discovered" in SL!

lemme remind u all of 1 thing,

befor u go screaing from the roof that LL should add some regulation, go think of the paypal and even CC issues we still have, with the paypal issues going on for months

so if they can`t take care of their own RL financial system, do u really expect theyd do any better with our virtual economy?

let that sink in...

I don't think LL really can get involved at this point. I think this is just gonna have to be a HARD lesson learned by all who got taken. It sucks, but I still fall back on my mantra "stupid should hurt".

No matter what happens, though, Ginko is done; probably other banks as well. People just aren't going to trust them like they did. I think that is a good thing; it means educated and conscientious self-regulation by the customers, which is ultimately the best way.

In my opinion "Broadly Offensive" matters is moral, sometimes legally imposed.
While L is virtual money to gain it requires real dollars. Sometimes a whole lot of effort, skill or disposable income.
If there isn't trust in how our real life investments in our virtual world economy and some type of security involving this eventually it will have effect in long term and it will effect Lindex. People will buy less and less lindens, which will eventually effect Linden Labs bottom line and the less funds will come from the residents except for membership dues and what currently already exist.
When this happens LL will have to do something if they want more money.
I have strong hunch eventually less and less people will be spending real money on virtual dollars.

I agree i count on my monthly cash in so this month will be hard. when i opened my business
My gut was telling me not to use a sl bank but every one told me to keep it in a bank so i did.
now every one telling me to bank with another bank * will not name the bank* . i will not use a sl bank again unless its run by a real bank or ran by sl. although the owner of ginko could have close his accounts and made a alt. but he has not so may be their is some hope.

I broadly agree with that. And the posts that have commented that you were not forced to use an SL bank in order to play the game/platform.

Like a bad investment there comes a time to cut losses and walk. We will have to wait and see if there is any fallout over this - I cannot imagine someone who has potentially lost a few thousand lindens trying to take legal action, but it remains to be seen how people who have potential losses that equate to a tangible material first life loss react.

I"m posting in this thread instead of starting yet another one

ginko just closed its doors and transfered everything to wse and gave everyone those bonds

read the site here

https://ginkofinancial.com/


someone posted on their blog this was going to happen however i didn't think that it was gonna happen like 10 minutes after i read it ..

wow.

here - http://www.your2ndplace.com/node/366, and they updated it recently after it actually happened but the first part is still the original from pre-closing.

and you get 12% interest a year, how awesome, i can do better than that in real life and with nowhere near as much risk.

This was a very poor decision on lukes behalf but brilliant on nicks behalf, now he has no obligation to pay the depositors at all, in fact he can buy back most of the bonds at a fraction of the cost and end up making a profit from it.

I know the shut down happened, But when can we expect the bonds? What happens if you already have a WSE account?

Boy I'm glad I had a reserve

actually the bonds are trading at 0.19 ask so they're actually yielding about 60% for the same risk assumption you make.

Well, you lose about 85% of the face value as soon a you buy one of those said bonds.

So how does -85% on your money affect the yield?

Can someone tell me exactly where to see my bonds and are the term deposits still being held and where to see those balances?

Help would be much appreciated. I don't find any balance on WSE.

Chianamber