Dear MMMites, even if MMM reopens in mid-January, it is still a bad investment plan! See 7 Reasons!!!

Dear MMMites, even if MMM reopens in mid-January, it is still a bad investment plan!

Dear MMMites, even if MMM reopens in mid-January, it is still a bad investment plan!

Hello Guilders (or whatever you call yourselves, abi is it Mavros?), we have seen your plight. We see how you try to console yourselves after your MMM accounts got frozen with this lexicon, "I invested only my spare money...” we know you didn't invest your "spare money", (wait, is it my money? What's my own self?). Well, you're Nigerians, and I consider you as my brothers and sisters. I understand 3 million Nigerians have invested in this scheme (making it possible for the website to overtake Facebook in web traffic) - this makes it 3 million uncertain people who are more hopeful on MMM unfreezing accounts in January 2017 than on the effects on President Buhari National Budget for 2017.

It's a pity that many are having suicidal thoughts already, and one soon-to-be-married man in Bayelsa allegedly committed suicide over the MMM freeze. Biko why? How do you invest in a scheme that promises you 30% returns in 30days without you carrying out any duty? Have you asked yourself what MMM does with your money?

I even saw many of MMMites commented that MMM is almost the same with saving your money in commercial banks, and even better because MMM give a return of 30% while banks will only give 0.06% interest. Well, maybe you all forgot that we save in bank accounts, not invest. If you want to invest in banks, then you buy shares, stocks, or bonds.

Now let's have a clearer picture of MMM and a commercial bank. In MMM, let's assume 5 people (A, B..., E) PH (provide help) at N100, 000 each - that's N500, 000 in the system. And because Mavrodi does not use these funds in any investment, thereby not getting any profit, the money in the system remains N500, 000. So, based on the 30% returns, if Mr. A GH (get help), he receives N130, 000. Mrs. B GH, he gets N130, 000. If C also GH, receiving N130, 000. We have N110, 000 left. This means Mr. D and E cannot GH. Even if Mr. D decides to GH and accepts N110, 000, E is then left completely shortchanged. So, for every 5 people, 1 person is left completely shortchanged. And for every 5 million people, 1 million gets to lose out. Why are we now getting involved in this Ponzi scheme?

For a commercial bank with 5 customers that deposited N100, 000 each for savings, that's N500, 000 in the system. The bank engages in many investments (both long term and short term). If Mr. A decides to take a loan of N400, 000, leaving the bank with N100, 000, the bank engages in businesses that yield N900, 000. Say Mr. B, C, D, and E withdraws their deposits, the bank will still be left with N500, 000. Don't forget that Mr. A will still return his loan of N400, 000 with an interest of maybe 25%. So, there's a lot of money going around in the bank. A banking system is not a Ponzi scheme system, they're totally different.

We all know the economy is so bad, there's inflation and loss of jobs, and we all need to make fast and sharp money. But, going the way of Ponzi schemes is the wrong way. Some people invested a lot of money (as much as N25million) in this scheme, money enough to build SMEs.

For further understanding, read the piece below, written by Oglala.

7 Reasons Why MMM Nigeria Is Not Coming Back

I think MMM is gone for good for the following reasons:

1. There’s no central account. This implies that so-called Mavros are simply electronic money. Everyone waiting to get help had provided help which they paid directly to other people in the past. They themselves argue that there’s no central account. If there’s indeed no central account where is their matured mavro? Is it in the cloud?

2. I believe the system calculated that the get help overwhelmed the provide help. This overload may have happened a month ago and the system had no option than to shut down.

3. Unless new entrants provide enormous help in January, there’s no way the get help group can recoup their money and that happening is very unlikely. The only way out is for the scheme to ask those whose monies are trapped to provide help again. That’s akin to what happened in South Africa and Zimbabwe and we well know where they are now.

4. The outrageous bonuses drained the system of money that would’ve been used to settle new entrants. But the organizers knew all along that it’s a scam so they built a long system of bonuses and cashed out. If the system was simply to help each other, why the big bonuses?

5. It’s very likely that there’s a group who don’t provide help but get help multiple times. Who can check except the site admin who will always include his cronies when matching for payment comes up. Why will they do this? Because they know it’s gonna crash.

6. When Mavrodians started showing off their ‘wealth’ I knew the end was near. All that show off was to get new entrants but they miscalculated the number of gullible people in Nigeria. Once the limit of people who want to reap where they didn’t sow was reached, the scheme had to crash.

7. That letter to the government was the clincher. If mmm doesn’t return in January all the blame will go to the government and the media. That has always been the scape goat in every country that mmm failed.

I loathe everything gambling. Even breweries that give millions of free drinks during promos are simply getting rid of expired stock. Telecom companies will give you 1000 percent return on your recharge but will bill the hell out of you during calls. Nothing in the world is cheap or free.

Desist from schemes like MMM, NNN, Ultimate Recycler, and so much more. Invest your money in better businesses.


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