It so so easy to counter Shereen's blabbering. I was going to do so until I spotted the first reply to her post.


Yeah, I don't think anything else needs to be said anymore...

Lookie what just popped up on the GMS page.

There isn't enough gold to pay out to everyone so its likely they would all be sold at FMV. I'm just curious as to whether the trustee will claw back from those who have gold in hand in order to share out the loss more equally.

If you check the GMS FB page, you'll find that there are quite a lot of people who want the directors to speak up. Even those who are still supportive of Genneva want its directors to at least provide some assurances that their money and gold is safe.

We're all eagerly awaiting the next announcement by the steering committee (aka Pat Lulu & co) to see how they're going to explain away BNM's latest report. I expect it will probably require such a mind-bending twist of logic that it might defy the laws of physics and cause the universe to implode.

I am amazed at how disconnected from reality the hardcore supporters are. Look at this one:

Phooey. Why would the banks be threatened? All your money passes through the banks, right? Its still part of the system. Even if all of Genneva's customers withdraw their deposits to buy gold, so what about it? The money will still remain in the banking system. The net benefactor would be CIMB, which I believe is the bank that Genneva uses. Money goes out from other banks to buy gold, money goes into CIMB as Genneva accepts payment. Of course, Genneva also has to pay its gold suppliers, who are either banks or other gold sellers who will also deposit the money in the bank.

Do you think the gold sellers build their own private vaults to keep their cash in so they can swim around in it like Scrooge McDuck? Of course not.

Face it - all forms of businesses, no matter how 'innovative' they claim to be, will always involve banks. Unless you are willing to take your physical cash out of the system and store it under your pillow, than you are merely shuffling money between banking accounts.

This Kee Hua Chee is quite the guy. His outfit has his own face on his crotch.

The Statutory Reserve Requirement fluctuates. BNM adjusts the rates depending on how it perceives the need for liquidity in the banking system. I do not know what the current rate is but historically it has never gone above 15%. It has gone as low as 1% at one point.

I do not know where 40% came from but he probably just pulled it out from his arse. That figure is excessively high and will make it difficult for banks to give out loans. Judging from the number of calls I get every month offering me a pre-approved personal loan, I don't think this is the case.

No idea what sort of complicated formula he's talking about. Than again, these folks don't even understand the concept of monetary policy and money supply, so its no surprise that they can be so easily bamboozled buy this guy's quackanomics.

No worries. Most of the GMS folks won't make use of these lawyers. After all, UMNO wants to help the customers sue Genneva and not BNM. How can they bring a lawsuit against their beloved directors? Perish the thought. You will make Auntie Shereen cry.

Oh man, that was a whole lot of long-winded bullshit so I trimmed it off if only because this was the point where he stopped making sense.

There are forex dealers or investment houses that can easily make 10-15% returns per month? You got to be shitting me. Seriously? If this is true, the ROI is even better than Genneva's. Why even bother to buy gold than? Might as well invest in that 10% monthly return thing and double my money in 10 months.

Undoubtedly. Madoff offered 8-10% per annum and his scheme turned out to be ponzi. There are others out there who can guarantee a return of 10-15% per month? If it isn't ponzi, than it is definitely money laundering.

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Our insurance salesman friend is babbling again:

https://www.facebook.com/GennevaMalaysiaSup...299437176840847

Is it just me, or does that make absolutely no sense to anyone else as well?

Latest wall post on GMS.


2 mil?!?

40k heebah per month?

If he is serious, oh dear...

Personally, I would like to compile the economic quackery that's been going round the GMS page and have them distributed to first year uni students who are studying economics. It will make for interesting classroom discussions.

Heck, I'm actually in the field of IT and even I can debunk their nonsense.

May not be correct? May be exaggerated? No confidence to answer with a definite? They are ducking the issue. Read between the lines - it answers absolutely nothing.

It avoids the most important question of all - If BNM were to release Genneva's monies and accounts now, will the company be able to deliver on all the gold owed to current customers, pay back those who have sold their gold but not received their money, and still give out the discretionary *snicker* heebah?

Yes or No. BNM's figures say otherwise. 'Maybe' is not acceptable as an answer, neither is 'Not Sure'. Even if you don't have any records now, you should be aware of the state of your own company.

Are you reading this, GMS folks?

Edit: Apparently, the early responders are also saying that the message is too vague lol.

This post has been edited by arubin: Dec 5 2012, 07:01 PM

What's funny about it is that supposedly, that Brendon guy is on their side even if he isn't a customer/consultant. He claims to have 'charmed' Jacklyn Kaw (daughter of Genneva director Joseph Kaw) once.

Being unsustainable is not a crime, but running a ponzi scheme is. What are the characteristic of a ponzi scheme? Being unsustainable, but yet continuing to draw in new investors.

If your Singaporean friends are laughing, its because they have recognized Genneva for what is over there and are suing the company. Malaysian Genneva customers still so blur, no wonder lagging behind Singapore.

I thought they are going to gather at BNM @ 11am this morning? What happened? If got, I wanna go take some photos. See if Lulu, Shereen, Sani and Abdul Wahab are there or not.

Sheesh, people keep reposting the same news articles. No offense, friend, but if you didn't catch any news article within the hour of its release, chances are someone has already linked or posted it here.

Anyway, I got some time. Thought I would address the first 2 points that they have been trying to spin on in one of their recent posts:

https://www.facebook.com/notes/genneva-mala...299660093485222


Excuses excuses. So what if there was a lack of supply. If the company did not have the physical gold, why did it proceed with the sale anyway? Why did Genneva sell gold it did not physically possess? Wait, let me guess...the customer was impatient to collect their heebah which is supposedly discretionary, yet the company never fails to meet that obligation....wait, did I just use the words 'discretionary' and 'obligation' together? Oh dear...

Sounds like this business of 'selling gold' is merely a cover for something else...


Sigh...do you even know how the banking industry works? Want to know what happens should a large portion of a bank's customers suddenly decide to make a run and withdraw all their deposits? You think the bank will fold, or even come up short? Hell no. Here's what will happen. First of all, are you withdrawing in cash or merely transferring to another bank instead? As long as no physical money is involved, than its just a matter if inter-bank settlement.

If its physical cash, than yes. Most banks will indeed have a problem with short term liquidity. After all, this is the age of electronic banking. Large transactions aren't usually made in physical bills anymore. However, any bank that comes up short in cash supply can always request assistance from other banks or even the Central Bank itself who have a responsibility to maintain physical cash reserves for such contingencies. Mind you, this is not a bailout. The bank will have to pay back later once it collects on its own loans.

So what is Genneva's excuse for coming up short? Where and how is it supposed to secure funds to pay back its liabilities? Lemme guess, BNM will step in and just give them a truckload of cash bwahahaha yeah, right...

LOL as I predicted. Boring lar these people. All talk no guts. Shows how little confidence they have in their cause.