The King is Dead

I wonder how much of the buying is being done by Nick P and his buddies,

Its a really Beautiful solution, really.

Buying out all the Debt he owed people at pennies on the dollar - while he still has whats left of their original money invested.

And at the same time raising the price so more people will buy the bonds .. Floating him out of his Ponzi hole.

I want mine in Lavender please with faux fur cuffs.

Aren't you the one who seems to call for blood any time someone talks about suing LL?

But yet this guy gets well beyond a reasonable "benefit of the doubt"?

welcome to SL banking!

don't forget nick has a diamond encrusted pimp cane.....

I had $1500 US in ginko. One of my friends had over $10,000 US in Ginko.

I'm not spazzing because... well... I JUST learned about this. I honestly thought that they would fix the problem.

So. This sucks.

holy crap.

I put my rl traders hat on over the last few days and (a) and gave idle thought to making a large deposit in Ginko (as was). No chance I thought, the so called stated return expressed as interest is not realistic, and that's being kind, and (b) there is no way I am standing in front of a tidal wave of withdrawals (yesterday it was $L47 million)

Now I think (c) should I buy the bonds as in theory I could obtain a yield on the par price of $L1 (trading price now at $L20 bid - $L25 offer. After all the potential yield for me would be in the order of 45% per annum. And Nicholas has effectively securitised Ginko's debts off balance sheet only leaving behind the obligation to either pay the interest or buy back the bonds at a possible discount to par.

Hmm a difficult decision, so I decided to consult my virtual dog Mutley in world. Mutley has been well briefed by my real life dog, who now and again takes an interest in stock markets to make sure his personal slaves do not buy shares or investments that are more of a dog than he. After all as he said, he does have his own personal needs to consider, they cost money, so he needs his slaves to have money, not promissory notes based on thin air and hyped promises.

Mutley, my virtual dog is of the same views. After all if his avatar is out of Lindens who will take him for a walk.

Mutley's opinion is these Ginko bonds are not a dog share, that he feels would be too kind a description. He thinks they may be more akin to a Dodo, although that is only his own view and he could be wrong. After all he said anything is possible in a virtual world including miracles akin to the Second Coming.

But why on virtual earth he said would new avatar investors buy Ginko bonds hoping for capital growth redemption at par, when the (then new yield) of 12% can be possibly matched or bettered by staid real life investments. Or for that matter why would Nicholas shell out money by his own admission he does not currently have to buy them back at anything other than rock bottom prices and then de-list the bonds

Mutley also pointed out where is the money coming from to pay the interest albeit at a reduced rate of 12% of which he does conclude could be achievable in real life although he goes on to point out another factor, and that is WHY would Nicholas (assuming he COULD) lock in his interest rate obligation, then pay off that obligation at 4 times the current trading price of Ginko bonds with no need to do so because they are open ended with no redemption date he is aware off

Mutley concludes by extending his virtual sympathy to avatars that are former deposit holders of Ginko. For them he said the position is grim

Yeah I know. We are stupid gullible people.

Is the WSE still running? Is there a link between Ginko and the WSE?

Show of hands. How many people were in another MMO called "EVE Online" and remember what happened to a certain "worldwide" bank in that MMO?

Anyone notice the same similarities here?

yep

just to bad u can`t sell isk tho unlike L$ as i could buy a couple more islands with the sales of isk lol

You guys do relize that once everyone starts cashing out these new "bonds" to get their money, the value of the bond will crash even lower. Right now the value is .15L$ with a "face value" (doesn't mean anything, that was just the price they sold at via IPO) was 1L$. The bonds were trading at 20L$, yes that is twenty! just a week ago. Once everyone starts cashing out, the bond value will drop to less than .01L$, which has already started to happen. The WSE shouldn't even allow this to happen and should freeze the bonds.

That would be true, if a crime had been commited.

It reminds me of the War Bonds issued by the Contintal Congress after the American Revolution. Congress didn't have money to pay the soldiers or those who supplied soldiers, so they issued them bonds. As the bonds were thought to be worthless, and the soldiers and suppliers needed something, investors came to the rescue(?), offering pennies on the dollar.

In the long term, the actual soldiers and suppliers got almost nothing, but the investors made tons of money.

In this case, the only who really has an interest in buying the bonds is the bank. The net effect is that they buy their own dollars for 20 cents?

Is there any doubt that, in a real life situation, the bank would be forced to liquidate their assets and pay whatever fraction of the face value of claims was raised by the sale of assets?

Nick is banking on these people, especially those with significant funds invested, holding out to get a return on their investment. As if he's ever done anything to show why they should have faith that they will get their money back other than exist for 3 years, on the growth of new accounts. GPB will never reach 1L. Nick doesn't have the money, and his illiquid hare-brained schemes are not working out - they are so far in the hole, I sincerely doubt that the investments ever returned any dividends. Ginko only survived because of the influx of new money and (willfully) ignorant users.

Who said Ginko Financial has no assets?

No.

I thought you were done with this forum. Go fix Ginko. Posting here does nothing to help consumer confidence. Just makes you look like you don't know what you're doing.

VooDoo, anyone can issue a bond. It is nothing more than a representation of debt. I don't get what you find so unbelievably funny about this.

There is nothing funny about what you have decided to do to "solve" what has happened. Go do something to get the bond price up.

I cant speak for Voodoo .. Though I think I know why hes laughing.

Me? Im not laughing - Im more sickened you got away with your Ponzi Scheme.

How many of you guys who are disgusted actually had money in Ginko?

Cause again, $1500US here and I'm not OMGWTFBBQing.

Without a published balance sheet, there is no other reasonable conclusion.

Nick, I would like to know what your going to do with the money I put in to your New Term Deposits? Are we going to get all our money or just the Que. I left a lot in savings hoping you would get through this.

I don't find this funny, but someone is laughing