

Second Life bank crash foretold financial crisis - tlrobinson
http://www.msnbc.msn.com/id/27846252/

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s_baar
What isn't wrong with this logic? Any scam calling itself a bank that went
badly now parallels real life?

There is no parallel whatsoever; the crisis and these scams have no
commonality.

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swombat
Agreed. From the sound of it, this Ginko "bank" was just a poorly disguised
Ponzi scheme. This type of scam is already regulated in the real world, for
the good reason that it always blows up if allowed.

The article is somewhat interesting but the points it makes are all
dangerously, fatally flawed.

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s_baar
Poorly disguised Ponzi scheme... That reminds me of another certain banking
system...

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swombat
Iceland?

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s_baar
I was thinking fractional reserve banking in general, but that is certainly
true.

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Anon84
Hindsight is always 20/20... Their point would have been greatly enhanced had
they written this same article _BEFORE_ the financial crisis.

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lnguyen
Yes, but then someone would go and claim that it'd never happen in real life
because "it's just a game."

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Anon84
True... and then reality would prove them wrong. Maybe they would listen next
time. This way, nobody will.

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The_Sponge
Some talking head complaining, "But they don't have rules or regulations...
It's a completely different scenario!"

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DenisM
Peter Schiff was actually forecasting the whole thing since 2006:
<http://www.youtube.com/watch?v=2I0QN-FYkpw>

The really scary part is when you find his current predictions for the next
few years: <http://www.youtube.com/watch?v=pGHODRNJqRo>

I'm seriously worried now.

~~~
tlrobinson
His podcast is even scarier:

[http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewPodcas...](http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewPodcast?id=292655537)

His predictions are so extreme I have a hard time taking it seriously. But
that's the exact same thing that happened to him 1-2 years ago...

~~~
michaelneale
Is it a case of a broken clock etc... or someone who always predicts downturns
will eventually be right?

Hi seems pretty sensible in that other clip though. The US has to make and
export "stuff" so that "other stuff" can be consumed from the rest of the
world.

~~~
DenisM
For me it's a case of "we've discussed this stuff among friends, but housing
kept going up so what do _we_ know?" and then finding out some serious guy has
the same opinion and we were right. I guess I could be a broken clock too. :)

All the stuff on the old video is fundamental economics stuff. It was also a
heresy in that no one dared to think about it, much less talk. It makes sense
and it did make sense to me back then. Of course I was also doubting my
perception because everyone was like "Eehaw! Party!" for a few years.

Listen to the last video - what he says is outrageous. He is not talking about
recession, he talks about the end of the American domaination by way of
overspending. It's _heresy_ of unimaginable magnitude. It also _makes a lot
sense_. It's truly frightening.

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michaelneale
Well I just assume I have no idea what I am talking about or what is going on.
In the past that has proved to be true.

Yes it kinda is heresy - but he says you have to _make stuff_ \- which I think
is (long term) really an optimistic thing to say. You can tell he really wants
the US to return to a country that makes stuff, that produces things that make
it wealthy, not meta-stuff (which I guess it is now). He specifically mentions
manufacturing.

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utnick
submarine story?

