OK - let's talk about the actual breakdown of authority and open revolt that occurred because of the financial schemes.
In January, 1997, the government began to close some of the fraudulent investment firms that were pepetuating the pyramid schemes. It is important to note that prior to this, these firms often had the backing of the government.
In January, 1997, the government began to close some of the fraudulent investment firms that were pepetuating the pyramid schemes. It is important to note that prior to this, these firms often had the backing of the government.
Protests began in earnest on January 16. By January 19, the capital of Tirana was engulfed in protests. Within a few days, the protests descended into violence and buildings were torched and open revolt actually broke out against the government.
The government tried to deflect the protests by paying out some of the losses beginning in February. However, there was no way the bankrupt Albanian government could cover all of these losses. The investment firms declared bankruptcy and the government ran out of money. By this time, the country was in open revolt and even the intervention of the Albanian special forces could not put down the revolt.
Keep in mind, this civil war began once the financial firms that engaged in the pyramid schemes became unable to meet their obligations. As we know from our studies, it is only a matter of time before pyramid schemes run out of money because the ability to pay investors comes from bringing in other investors. Once this pool of investors dries up, which always happens, the money evaporates as well.
We will begin wrapping up our discussions of this event tommorrow.
Have a great and fraud-free day.
http://www.tauskvega.com
-------->>>>>>>>>>gene tausk
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