It's time for SL residents to take a stand

About 8% of deposited cash was withdrawn in less than a week. That is -all- that happened. The only reason this hasn't happened with other banks, probably, is that they don't have a transfer feature, such generous withdrawal limits or an unlimited L$ sale service, which means that the bleeding when the shock about the gambling ban hit, was contained until people calmed down somewhat. With Ginko, the panic was compounded by the fact the initial panic bled us dry. These calls to call the FBI or whatever are absurd and would, if they even succeeded in calling them, lead to nothing but trouble and further delays for all accountholders. One guy claimed he "proved" we were a ponzi because... we did what every single money manager does in day to day business. If we raise rates, they say we are clearly a ponzi trying to attract more suckers. If we lower rates, they say we are clearly failing. If we don't release investment information they say I spent the money on a new sports car. If I do release investment information they are shocked that I took risks with the money, instead of investing in guaranteed things. Please stop listening to people who either don't have a fucking clue what they are talking about or are acting out of malice.

But then the Busy Body Committee would have nothing to do all day.

I think the confusion is....lindens aren't worthless. THE Lindens appear to be at times.......

Please point out the lie or false pretense under which Ginko FInancial took deposits.

Nicholas am I correct in thinking a Ginko standard deposit holder may transfer funds out from Ginko by buying bonds (Ginko Perpetual Bonds (GPB)) from Ginko at $L100 Linden dollars each - when the current free WSE price is around $L16.97 each?

These two lines are word for word on your website typed by me
------------
Bonds are currently transferred to your WSE account manually, a process which may take up to 3 business days to complete.

Each bond costs L$100 when purchased through our website. You will have a chance to confirm your purchase on the next page.
---------------------------------
If that is the case these BBs serve a useful purpose in bringing price arb to the attention of all

Yes, you are correct.

Nice Discount

Okay... I doublechecked your thread at
/327/93/201633/1.html#post1613564
and that was the only "solution" you proposed: Player A must sell to Player B (though Player A has done nothing wrong other than failing to "inspire confidence".

That is what I thought Colette. Great minds think alike -

It would appear to be quite an elegant way of reducing Ginko liability although I am not quite sure how depositors would feel about that. A lot depends on the free market price of the bonds in the future................................................................

Okay I do of course take your point. I did not mean to state it was the only singular solution. I trust the word "singular" clears any misunderstanding up

One critic of Ginko made a not-well-thought-out suggestion, and now you are trying to paint Ginko's critics as Nazis?

He was responding to a post which used a famous anti-nazi quote to justify attacking Ginko Financial.

Let's scroll back.. it's fun!

First, someone said:



Which engendered the response of:



I thought that was a bit out of right field (heh) as I didn't know that someone pointing out the uselessness of the uninformed opinions of people who've never used Ginko was equivalent to fascism. Anyway, I wasn't the one playing the Nazi card. Instead... stay with me here...

I trumped it... by pointing out that forcing a sale of the bank (or seizing it) was very very similar to something a certain group of people did during the latter part of the first half of the 20th century. Namely, seizing property of others though they have violated no law.

This crossed my mind because of this post here:


And then I pointed to a link which described exactly that.
http://www.mercuryinretrograde.org/index.php?title=Lippmann%2C_Rosenthal_%26_Co

So, yes... I have a hard time with anyone suggesting solution(s) that involve seizing or forcing the sale of another resident's land and/or enterprise, though no rules have been broken, on the basis of the Busy Body Committee deeming it unattractive, unproductive, unworthy, improperly profitable, etc., with the justification that the Busy Body Committee (or one of their friends) would make better use of the resources.

Not exactly. The famous anti-Nazi quote wasn't terribly appropriate, but it wasn't to justify attacking anybody. It was in response to repeated questioning of the standing of the OP to voice an opinion without personally having L$s deposited in Ginko. It was never clear why those questioners should be surprised that someone without personal funds at stake might have an opinion. I guess anyone without a conflict of interest must be a Busy Body.

All those people who commented on Enron were Busy Bodies Too.

Dam that CNN!

Isn't a Ginko some kind of Nut?

No its a chinese rare tree Brenda (chuckle) Give me a break love and I will post the link tomorrow if you are interested

Thanks

Thanks

I see.

So the situation is that someone with say $L100,000 Lindens in a standard deposit account with you could remit their funds via the WSE to acquire Ginko Perpetual Bonds. Each bond would cost $L100, therefore they would own 1,000 bonds.

The current market price is around $L16.89, that therefore means Ginko would clear a profit of around $L83 per bond or say 83,100 lindens per Linden deposit account having a balance of $L100,000.

Each deposit holder would suffer a loss of around $L83, 000 per $L100,000 deposit balance

Ginko's asset and liability position would clearly improve on each and every bond sale.

This assumes of course the WSE market would be able to support continued sales, because of course each sale of bonds must have willing purchasers

Thank you for clarifying these issues Nicholas.

---------------------------------------------


For everybody else I think that this point alone justifies the interest of independent third party observers without a vested financial interest. It means we are able without fear or favour to present an independent view.

Here is an abstract from Ginko Perpetual Bonds Prospectus for your information

Chairman's Letter
Ginko Perpetual Bonds are non-expiring bonds which yield L$1 per month each. The yield is guaranteed by Ginko Financial so your risk is minimized, though not completely eliminated. While the bonds do not expire, it is possible for the company to cancel them by paying a liquidation dividend of L$100 per share. The yield will not rise or fall because it is guaranteed by Ginko Financial, but the risk of bankrupcy still exists.

Business Overview
The money raised by these bonds is given to Ginko Financial to be used in the conduction of it's business activities, including but not limited to:

- currency exchange (GCS)
- investments in WSE stocks
- virtual estate development
- venture capital financing
Business Strategy
--Confidential--
Business Strengths
Ginko Financial has been managing the money of thousands of SL residents for many years now and is the biggest and oldest in-world bank.

Bottom line, we know what we are doing and we have demonstrated time and time again that we are not going to just dissapear. Honesty is our greatest strenght.

Sounds like a bargain. Take an 83% loss!

I think you mean Ginkgo it's a herb. makes good tea, but don't drink too much of it, you may have a reaction to it like i do.

http://en.wikipedia.org/wiki/Ginkgo

Also ginko is a nut, in the sense that it is crazy. XD

My viewpoint is simple and I think it is common sense.

Linden Labs either set up regulation or scandals will happen one day. And when that happens, the credibility of SL will take a hit. If the losses are big enough, some politicians will suddenly find the issue interesting.

Is this far-fetched? Right now, it is.

On the other hand, I see this as a realistic scenario. Imagine that a bank in SL offers you 0.14 percent daily interest. This gives you a yearly rate of 51.1 percent on your savings.

Stunning.

People who get such returns in real life have to either plunk private capital in small, high-risk companies that can provide great returns. Only amazing investors will be able to do that. Can they also do it at all times?

Otherwise, they have to be grand masters of the stock markets. Are every SL bank managers grand masters who can get at least 50 percent returns at all times to pay interest? What if we go through a stagnant market for a year? Just look at the current situation. Risk and uncertainty are affecting many markets in the world...

There are many questions and I never found, despite everything I read, an answer that makes me feel any better about the issue.

Your forgeting one important thing.....you cant sell 100,000 thousand bonds at $17L.

once 13859 bonds have been sold the price will crash to $2.50 lindens, so if anyone is planing to do this i suggest you do it quickly, once someones done it you'll have to take even more of a loss.


Is that correct, Nicholas? (thought i'd ask, seems you dont think im capable of providing any facts)

Yes everyone, dont listen to us, we are full of malice.

Buddy, im not the one with over half a million US of peoples money, unable to give it back.


Like Colette pointed out in another thread, its a simple enough question:


DUDE wheres the $#%*$@% Money?