I'm an auction-house tycoon, and I work for the Bank of Blizzard. I loan gold and godly items to members of battlenet. Been helping noobs pwn ever since 1.03.
Every quarter, a portion of battlenet membership fees are given to the Bank in gold. I take that gold and invest it in godly gear. I buy, sell, and loan gold/items for the Bank.
If a player wants to borrow some gold or gear, I will loan it to you for a monthly fee. The collateral for this loan is secured by your worth - in gold, items, and your ability to earn those in the future.
I work hard making sure you out-gear your content. Every time I make a loan, I get a lil gold for myself (transaction fee). I also get a quarterly bonus based on how many of these deals I make.
I make good gold doing this, so good that I get greedy. I start giving loans to everyone. Loans to hardcore characters, loans to newbs stuck in Hell Act 3. Loans to people who couldn't possibly pay them back. I don't care, I make my bonus.
Bad Loans tend to default, especially when securities are over-valued. With the depreciating value of gold/gear, I foresee my Bank loosing money. But this takes time, and I'm living good now.
To keep on living I sell package-deals of these loans to other members. Every time I sell a package deal I get paid via a skim off the top (transaction fee). Other members like this because it is an easy way for them to get in on the action and earn some gold.
Although most of the individual loans are risky, the package deal isn't. With a nice chunk of loans, you are bound to collect on a few even if the others fail. This reduces the risk for investing on these 'derivative loans'. With a reduced risk, these loans now have increased leveraging power. With more leveraging power, other guilds can now trade these packaged loans for more gold then they are really worth.
Loans take time to pay and be payed, but creating and selling loans nets instant profit - for me. The more time I can stall, the more gold I collect in battlenet fees. I can then use these battlenet fees to lend out more gold to other members and pay off any gold I have borrowed.
The economic consultants and lobbyists for Blizzard see what I am doing, and like it. They want in. So they tell Blizzard to loosen up the regulations for trading packaged loans. Blizz agrees, and I give each of their employees a fresh 30% ED SOJ.
With looser regulations from Blizzard, I find a new way to make loot. I launder gold for Botters.
I use Botters' gold to buy and sell loans. Because of no regulations, I don't have to really say where the gold came from. The more times each loan is traded, the paper-trail becomes more convoluted. Once an item or loan has traversed both auction houses, its true origin is lost. This fuels a healthy Botting community.
With looser regulations, it is now easier to borrow gold then it is to lend it. Eventually the system crashes. Gold and items are worth next to nothing. This loss of money makes my Bank owe more than its worth, and so I ask Blizzard for a Bailout.
They agree, and decide to pay my bank a lot of gold. This gold comes from an increase in auction house transaction fees for everyone. This gold also pays my bonus, that I worked so hard for while my Bank failed.
Because of Blizzard's help, I now give any of their employees reduced gear prices and reduced financing on their loans. I also fully support Jay Wilson. I use some of my profits from Banking to fund Jay Wilson's re-election campaign.
If he loses, I don't care. So long as the new guy needs a loan.