Hacker News Reader

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

Iceland?

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

When the cry is "less regulation" at some point you end up with zero regulation. I think looking at eve-online is a great example of zero regulation at work. There are high returns on investment but high risk and the lack of trusted institutions slows the economy.

I asked a few people in Second Life how Ginko worked about a year ago and no one had any idea. Between that and the fact that there is no kind of deposit insurance mechanism, I wasn't going to touch one of those terminals.