16/12/2016
My 30cents on MMM
I think I am done suffering fools on this MMM Ponzi scheme. The wordings of MMM's terms and conditions and its insistence on using spare cash hence “we are not hurting but helping everyone” shows its a well planned daylight robbery of ignorant Nigerians.
Charity is giving without expecting a direct compensation from the recipient, with most purely gaining a sense of fulfilment in being privileged to improve the lives of others. The idea that I helped you today and someone can be guaranteed to help me on a greater proportion in 30days, 30% more than my "charitable contribution" at the beginning and now improved to 50% more this December with the lack of liquidity in the scheme is base case foolish. Nigeria is an emerging economy, its quiet disappointing that nothing has changed of our leaders, their inability to protect vulnerable citizens in this desperate times. All talks and no action. You were elected leaders to make and take tough decisions and blocking the MMM website earlier rather than just warnings would have gone a long way to reduce the amount of casualties. Yes some would have lost their money but it would have been more their "spare cash”. Yes it always starts with “spare cash” but why would anyone see something that can earn them 30% from their pocket money and not start thinking of putting their live savings? It is the job of our leaders and elected officials to be proactive. Just like a baby would want sweet for breakfast, lunch and dinner but it doesn’t provide all the nutrients required to grow. Am I calling Nigerians babies? Far from it, but in desperate times, hope can take the place of reason and it is the role of leaders to step in.
MMM is simply a balloon of charitable giving, that can only continue to expand if it gets contribution on an increasing geometric proportion and would have been sooner or later guaranteed to burst. Its 30 day absolute interest rate of 30% further makes the model virtually impossible to sustain in an economy where there is little next to nothing you can do to earn that kind of money in a year. As those that are part of the scheme can testify, you are always encouraged to invite new people into the scheme because truly it is only with their money in that you can get your money out.
To my main point of writing this, Nigerians, please do not make further charitable givings into this MMM. The argument is the need to slow down the rate of withdrawal given the Christmas season and bad press but you can still contribute, who are you contributing to if no one can withdraw? We are intelligent beings and at some point we should sit down and ask ourselves truthful questions such as, if I was given N1mio today, do I have the ability to make N300k extra on it a month from today? Some will possibly say yes, but the next question should be, how many of such opportunities exist in Nigeria for the 3 million Mavros to all invest in? Because except 100% of that business succeeds, someone is not getting their money back.
It is unfortunate for those that have their money stuck in it, I feel sad for them, because yes desperate times called for desperate measures and MMM timed its entrance to perfection. There are only two endings to this story, because the size of the MMM is still relatively small in Nigeria in dollar terms, MMM could probably speak to an investor to put in new cash. What this means is that 1 month from today payments will be made, but please trust me when I say this is the worse of the 2 outcomes. Its payment in January will see some take their money and run, but will also attract a significant new number of contributors because of the increased confidence from its none failure as predicted by most observers. The new contributors to the scheme will first be used to pay the investor and the Ponzi scheme continues but now on a bigger scale. Ponzi schemes run on confidence and this would have certified future confidence in its recovery. However when the Bubble finally bursts, the amount of citizens affected will be quite significant. The second ending is one where they are unable to pay in January and this puts an end to scandal, it might look the more painful approach in the short term and with Christmas around the corner, but it will affect fewer people and lives.
