Ginko Financial

I at not point suggested that you were a Ginko customer, nor did I ever attack anyone asking question. I asked that if you had questions, that would you please send them in IM or on our forums, and not try to turn each post into "its a scam because they didn't answer this"

you started this thread to try to ruin Ginkos name {Ginko Bank has been around for about a year, so I'm curious why this sudden vigilante against us}. Using snide remarks and trying to make everything sound negative...

Really, then you didn't post the following in response to Anshe's post?



Seems like an attack to me. You definitely say that Anshe is trying to ruin Ginko's name by asking the simple question, "How's it possible to have such huge returns on investments."

OMG! I did make an error in my first examples...

I didn't factor in the compound interest!

I was very wrong and very, VERY underestimating the worst case senario: That of no one withdrawing and L$250,000 going into the system every day. WITH the compound interest, at the end of 64 days, 16 million L$ will have been given to me, total, and I would need to have made 1,000,000,000,000,000 US dollars to pay everyone off. Again, this is with NO withdrawls. Absoulte worst-case senario. I forget how to pronounce 1,000 trillion properly...

EDIT: Scratch this one... Made me doubt my calculations and I over-reacted. Knock 3 zeros of that number... It's only 1 trillion.

Just remember the fable of the little old chess master and the emperor. The emperor wanted the chess master to teach him, and the man agreed. For payment, we wanted a single grain of rice today, to be placed on the first square of the chess board. The next day of lessons, he wanted twice as many grains of rice on the second square, and so on. When every square on the board was filled in this manner, the lessons would be over and the emperor would know all of the master's secrets. The emperor agreed.

His empire ran out of rice long before they got to the end of the 64 lessons, and he never learned the master's secrets.

That was 50% daily interest.


EDIT: And if it IS 15% a week instead of per day, then yes, the numbers don't get as large as fast, but they still get very large before long. The money has to come from SOMEWHERE. Eventually, at those rates more L$ will be earned in interest than have ever been created by Linden Lab. The system HAS to end before that.

EDIT: And if it IS 15% a week instead of per day

Forget all of my long-range extrapolations, there are mistakes in there (like 15% a day, which WAS said earlier in this thread, but is incorrect), and -- as I said before -- has no bearing on any actual real-world or virtual-world system.

But still, the one-cycle example should have raised some warning flags.

L$16,000,000 or US$64,000
for one week at 15%
64,000 * 1.15 = 73,600
73,600 - 64,000 = 9,600

If you gave me 16 mil Lindens today, I would have to make US$9,600 this week to give back to you, along with your original US$64,000.

If you did the same the next week, including your profits, I'd have to make US$11,040.
73,600 * 1.15 = 84640
84,640 - 73600 = 11,040

If I made any mistakes, they should be obvious here, since all my math is in the message.

It can't be sustained. (If it could, don't you think real-world BANKS would do it?)

No, actually, it's 0.15% interest a week

Forget all of my long-range extrapolations, there are mistakes in there (like 15% a day, which WAS said earlier in this thread, but is incorrect), and -- as I said before -- has no bearing on any actual real-world or virtual-world system.

But still, the one-cycle example should have raised some warning flags.

L$16,000,000 or US$64,000
for one week at 15%
64,000 * 1.15 = 73,600
73,600 - 64,000 = 9,600

If you gave me 16 mil Lindens today, I would have to make US$9,600 this week to give back to you, along with your original US$64,000.

If you did the same the next week, including your profits, I'd have to make US$11,040.
73,600 * 1.15 = 84640
84,640 - 73600 = 11,040

If I made any mistakes, they should be obvious here, since all my math is in the message.

It can't be sustained. (If it could, don't you think real-world BANKS would do it?)

I believe the interest rate is 0.15% per week.

So, compound (1.0015)^52 for one year.

*skips the rest of the thread after reading two pages and brings up Excel*


If L$250,000 was deposited each day, at 0.15 daily compound interest, and no one withdrew...

Then at the end of 2 months, 16 million L$ will have been collected. That equates to US$64,000 at current echange rate (1:250). To even be CAPABLE of honoring the terms should all investors choose to then cash out, the organization would need to have made a PROFIT off the invested money totaling a sum of US$2,173,500. That's US Dollars, not Linden Dollars (which of course would be half a billion).

If some percentage of participants withdraw their money over the course of that two months, the total sum will be less.

If it instead took twice as long, 4 months, to accrue the 16 million at a stedy rate with no withdrawls, the total necessary RL profit needed to cover all investors would be 4 million US dollars.


I personally don't know how to make 2 million US$ out of US$64,000 in two months.

Nor do I know how to make 4 million US$ out of the same 64 grand in four months.


If I did, I wouldn't play Second Life... I'd pay someone to play it for me.

Forget all my posts. I was working off incorrect data, and making a stupid mistake to boot. My calculations are, for the most part, right, but only if pi = 3. Try it, you'll see.


...*goes to sleep under his desk*

Is Berkshire Hattaway a pyramid scheme?

I think the current interest rate for Ginko is 0.14% a *day*.

And then you forgot to add in the constant interest rate drop that has been mentioned 4 or 5 times now, right?

It has been posted on the Ginko forums itself, this fact, before this post here started.