Friday, March 29, 2013

True Colours of a RESELLER come Bank Manager

I thought I'd pop buy Tzepu new bank at Fort Argus and see what really was on offer to the community.

All I see by taking loans from this bank is extremely high weighted risk heavily in favour of the bank. Considering we have a reseller that has been very successful at convincing the community his valuation are spot-on over the years, it's quite ironic that he sets a completely new sub-standard loan to value calculations against YOUR items as his collateral.

I would agree that you would need to mitigate a "reasonable" risk when loaning funds, and undervalue core items so ensure you cover falls in market prices, but we have to ask oursleves so these valuation hold any morality? I think not.


1) Are these loan values, Tzepu true estimate of what he believes items are worth? If so looks like we are going to see some big drops in prices.

2) Or does he have a box of tissues beside his desk, watching the clock tick down and getting very exciting about his new items? In other words is the purpose of the bank to loan to the community, or is it a colourful way of dressing up the hope of obtaining items at grossly undervalue to then resell at a massive profit?

It's likely Tzepu will defend his position stating that due to current available funds, he is attempting to offer as many loans as possible with those funds, and hopes to adjust valuations when more funds are available. Well in that case I suggest the community considers the massive risk to their items taking such loans right now should they fail to repay within the 30 days.

Not content with severe undervaluation, we also have a 50% loan interest rate. Anyone think that is reasonable considering the bank isn't taking any real risks?

So lets take a mod fap. Tzepu thinks this is only worth 80K peds (not 140K - 170K that these resellers will happily try and sell it at). Iif you loaned it for a year your interest bill would be 40K peds. However loans are valued on 30 days so 40K/12 = 3,333.33 peds interest for the month (or approx 110 peds per day)

Here's a pic of some chips and the offers available. Kind of funny that Tzepu sold an X corr the other day for over 6K peds (originally valuing it at 10K), yet on his bank system he has valued them at 1K peds.

So for those that don't understand it the item owner borrowing a loan is not only incurring a rate of 50% APR, but they are also putting thier items at massive risk of loss.

So why all the gratz for this bank opening? To me this is clearing about maximising opportunity, putting all the cards in favour of the bank hoping theres some cool items to claim from unfortunate players that run into financial difficulties.

In my opinion I suggest the community stay well clear, until the bank reconsideres its position on APR and valuations.

I think a reseller is the wrong person to run such a venture. I do not feel any positives for the community with this at all.

Feel free to suck up the banker/reseller though hey they been telling you the truth for years to line their own pockets. Or use your own head and think about it.

Rickard Rick England

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