Ginko Financial Update From Hinoserm Rebus
I was going to wait until Monday to write once more was known, but since I got this press release via notecard, here we are. Submitted without comment; that will likely come tomorrow.
The notecard:
Notice Regarding Current Situation 08/05/07 02:57:38 PM EDT
___________________________________________________I would like to personally try to explain some of what's been going on.
About a week and a half ago, we saw an increased number of withdrawals; the time to speculate as to why this happened has since come and gone, so I will leave it at that. No matter what started it, the result is the same: We have expended every possible short-term resource, and are still unable to meet the current demand for funds. We have attempted several different things to remedy the situation (which is in short why the interest rates and limits have fluctuated wildly), but none of them turned into a viable permenant solution.
For the time being, we have decided to continue doing business normally, but leaving the withdrawal queue in place with an expanded L$1,000,000/day limit, to give an indication as to where the end of this situation may be. However, a realistic estimate could possibly extend in to the realm of several months.
It may be hard to believe that we would expect people to stick with us, especially after how poorly this situation has been handled, but a large number of you continue to show your support, and I still have hope of a second chance at fixing the problem.
For those of you who wish to withdraw your funds, you may wait in the queue, or cash out to Ginko Perpetual Bonds, which is currently the only option if you don't wish to wait the seemingly indefinate period of time it could take to refill the reserves.
I would also like to personally appologize for the lack of communication and the diminishing customer support during all of this, but through all of the changes that were being made it is impossible to keep my support staff fully informed, and usually I am the last person down the line to receive factual information -- and too often the first person to relay that information to you.
I thank everyone for your continued support of Ginko Financial, and hopefully with time we will be able to continue through this situation and get things put back right.
-Hinoserm
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It's all very comic
"Oh, our scheme is collapsing - but please, put some more money in! You'll get it back in thirty days! Honestly!"
As shitty as this whole
As shitty as this whole situation has been, I think (hope) that the fact that they are trying to make everything right counts for something. They could have closed shop and left us in the dark, but it seems they are at least planning to keep things up and running.
Dear me...
... this comment indicates that people STILL do not understand how this scheme worked.
Benjamin, however, does and the points he makes are correct. Any money being deposited now immediately goes to a subsequent withdrawal and the pot immediately becomes dry. A Ponzi scheme can't be "saved" once it has crashed. And Ginko effectively crashed the moment the bank run began.
Ginko is dead. Anyone with a deposit left in there has lost all of their money. The ATMs need to be closed now so that no further people lose cash.
The disgusting thing about this comment from Ginko is that they know precisely how the scheme works. They know that it can't be saved. They are merely covering their increasingly exposed asses by appearing to try to be the good guys.
It doesn't count for anything...
If what you were saying was true, then they would close down deposits. What this indicates, to me is two things. 1) at some core level, they actually believe this might magically still work, and 2) they are hoping that as long as they leave it running, they won't be prosecuted or sued.
But leaving deposits open when they go DIRECTLY from the depositor to the pocket of a previous depositor is so transparently criminal that I can't even give them much credit for #1 any more, and I've been someone who has consistently said they bought their own nonsense, even as one of the loudest critics of their facially illegal methods.
Think about this -- they knew how much money they had five days ago when they were offering 148% interest on 30 day term deposits. You think they'll be paying those in, now, 25 days? Every penny that they take right now saying it's a deposit that will earn interest is undeniably fraudulently received.
Landowners who care about their tenants should remove ATMs. Victims should file Abuse Reports. This is no different than a land scam at this point. It just takes longer.
[Edited for typo]