New eeerrr Old MA Ad?

oh really ....

... interesting.

Anyway, you have to love how they 'garantee' that the items will be worth more than you bought them for all the way!

 

LOL, I still dont see them makeing a serious entry, or steps to do so, into the mainstream visual media. Yet the platform is so much more classier and better quality wise compared to WOW. I also find their absence in propper Television and Ciematic advertizement still very dubious. We shall see, mabe theyre gearing for a blow-your-mind kinda launch via the mainstream medias.

It tickles me that he admits communism as a means of overlord rule in this virtuality and thats gonna scare a lot of peops away. But the right word is Draconian, not quite Communism even tho communism is draconian in nature and corrupt as hell.

 

I agree with you fullheartedly on this one. What the hell happened to Simon and Emma? isnt PA-Arrival point the entry point into the verse no more? LOL, if so Mindark are realy screwing themselves.

 

I dont like the part where it says MindBank will do loans to players. Probably gonna be like the SMS-loans that exist in Sweden where you can get a quick loan to ABSURD amount of interest making the people who take the loan get more in debt really fast.

A casino shouldnt be allowed to issue loans

 

I agree with you... but at the same time is your personal financial situation any of MindArk’s business or responsibility? Are we not all adults capable of managing our own finances? If you over extend yourself with excessive loans, is that MindArk's fault or is it your fault? Mindark needs to be responsible with who they choose to lend money to. Loans need to be secured or borrowers need to have a high real world credit rating. On top of that, we as consumers need to be very careful with how much we borrow. Personal responsibility plays a big role.

There is both simultaneously a very bright side and a very dark side to this MindBank scenario that I am both optimistic about and very concerned about.

I assume that like any modern bank, MindBank will use a fractional reserve banking system. This will literally give them a license to "print" money, or more accurately put, a license to create money out of thin air.

Here is how fractional banking works in very simplistic way:

Person A deposits $1000 USD into the bank. The bank can now use this money to issue a loan to a different person however in most cases the bank is required to keep 10% of the deposited money as a reserve. So that means they can now issue a loan for $900 to person B.

Now this is where it gets crazy. Because person B deposits his loan into his bank account, the bank now has another $900 to work with so they keep $90 as a reserve and issue a new loan or $810 to person C. Because person C also has to deposit that money into the bank, the bank can now issue a new loan based on that amount which means they will keep $81 as a reserve and issue a loan for $729 which the person again has to deposit into the bank. The bank can keep doing this over and over up to a point.

Even if the bank were to stop at this stage, here is how the math works out from this initial $1000 deposit and the subsequent loans thereafter

Total deposits = $3439 (1000 + 900 + 810 + 729)
Total reserve = $1000 (100 + 90 + 81 + 729)
Total loans = $2439 (900 + 810 + 729 + 0)

As you can see, the bank literally created $2439 in real spendable money out of thin air though loans in the fractional reserve banking system. This bank license that MindBank has is literally a license to create money out of thin air.

A system like this has a lot of implications, both good and bad. First for the bank, it dramatically increases the amount of outstanding loans in which they can earn interest on. For the economy it dramatically increases the amount of money in circulation which increases the spending power of each individual person. Increased spending power of consumers of course in turn increases profitability where they spend that money and also the healthy booming economy creates all kinds of new opportunities for people of all kinds of people to make money.

On the flip side of that, it burdens the population with debt and interest. On top of that, excessive money in circulation that is backed only by debt and faith always leads to inflation which means each dollar is worth less and less over time. Lastly and most importantly, the only thing that keeps the system working is literally the faith in the system itself from the consumer population. Once that faith is gone, people start withdrawing their money from the bank rapidly (bank run) which then quickly causes the bank to go bankrupt because they keep such low reserves.

This same fractional reserve banking system is at the core of the world financial problems right now and is why our governments have had to inject billions and trillions of dollars into the banks.

I fear a fractional reserve system entering Entropia and I really hope that MindArk is very careful and responsible with how they issue loans to people.