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Russia in 90s. Frauds.

The 90s times were the perfect moment for frauds and deception. People were economically naive as the Soviet government took care of all money related matters before. Needless to say, that the previous regime did provide any understanding of capitalisms rather than it was ‘rotten’. When the Soviet Union collapsed, people were free to do what they wanted with their money. Sadly, they hardly had any knowledge on what to do.

The freedom was everywhere, but people didn’t know what to do with it. Majority didn’t. Yet, there was a small category of population, who had a strong entrepreneurial spirit. What a great start could it be for the country? Though, it took a wrong turn. The huge number of financial pyramids started to emerge.

Nowadays, there is no need to explain what a financial pyramid is and how it functions. Back in 90s, noone knew, which was a perfect basis for frauds to take over. One of the biggest financial pyramid was ‘MMM’, which was named after the founders or, better to say, the first letters of their surnames formed the company name. People could buy stocks of the company (or vouchers), which were promised to bring a lot of money in future. MMM took a good effort to advertise itself, the ads on TV were captivating. Why people believed in that? Simply struggling with hunger, every one wanted a miracle to believe in. The sufferings that people were through must have stopped, and bright wealthy future should have knocked the door. Yes, it was desparation combined with economical ignorance. But everything comes to an end, so did MMM and other similar organisations, leaving thousands of people with nothing.

10 thoughts on “Russia in 90s. Frauds.

  1. If I had the power I’d have the basics of Finances made compulsory in schools. As a textbook I’d recommend “The Richest Man in Babylon” β€” which for all I know may well be out of print now (gave away my copies years ago, must replace).

    Glasson (or similar) was the author …

    Liked by 1 person

  2. Whenever there is trouble there will, unfortunately, be those who will look to take unfair advantage of those who are desperate for hope. So sorry to hear this added more misery to tough times. But I’m glad they were able to shut them down eventually. I guess it’s important lesson to remember to stick to good values and work to make things better instead of trying to get something for nothing. But it is sad so many had to learn the lesson harshly. Thanks again for sharing!

    Liked by 1 person

    1. Indeed, desparation does a lot of harm itself. I like your idea about learning a lesson, yet, similar type of frauds appear again and again. I will tell you more, they have a lot of ‘clients’. Though the memories are fresh, people refuse to take the lesson.

      Liked by 1 person

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