Wednesday, March 2, 2011

You think pyramid scheme only harms a few people? Think again.

Pyramid scheme lead to complete collapse of Albanian Government in late 1990's, according to this paper by International Monetary Fund. The pyramid schemes in the country actually equaled 10% of Albania's GDP.

When the pyramid scheme collapsed, over 2000 were killed in the riots and unrest. Government offices were burned and looted. Food prices increased 28% in a single year, and the currency depreciated by 40% against the dollar... All due to the financial system's collapse.

IMF is a United Nations agency dealing with monetary issues around the world.

If you think there's just a few victims, think again.

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