Let's talk about why the country disintegrated into civil war for a moment.
People lose billions (yes, that is billions with a 'B') every year on pyramid schemes. There are lawsuits and counter-lawsuits that fly back and forth as a result of such actions and, of course, criminal prosecutions that result. We have seen that pyramid schemes are illegal in many countries, including the U.S.
Albania, however, was a unique case. We discussed the fact that Albania emerged from 50 years of the worst kind of communism. The isolated country was not prepared for the modern world. The Albanian population, with no recent history of contact with the outside world or free market economic systems, was easy prey for schemes that enticed massive rates of return for little investment. And, remember, pyramid schemes pay off the earlier investors, so there was a great deal of "evidence" for people to invest in these schemes. Why stop investing while people around you are getting rich (sound familiar)?
There is another issue involved as well. Albanian history is long and tortured and previous to the "experiment" with Communism, Albania was a backwards province of the Ottoman Empire. So, long before Communism was imposed on the country in the hands of a mad dictator, it was isolated from the rest of the outside workd because of its position in the Ottoman Empire.
So, for 500 years, Albania was cut off from the outside world. Its people, except for a small minority, were not exposed to the rest of Europe and the development of free market capitalism through the Renaissance. This history, combined with the recent Communist history, made Albania a prime target for "get rich quick" schemes.
We will discuss this economic illiteracy more tomorrow.
Have a great and fraud-free day.
http://www.tauskvega.com
------------->>>>>>>>>>>>>>>gene tausk
People lose billions (yes, that is billions with a 'B') every year on pyramid schemes. There are lawsuits and counter-lawsuits that fly back and forth as a result of such actions and, of course, criminal prosecutions that result. We have seen that pyramid schemes are illegal in many countries, including the U.S.
Albania, however, was a unique case. We discussed the fact that Albania emerged from 50 years of the worst kind of communism. The isolated country was not prepared for the modern world. The Albanian population, with no recent history of contact with the outside world or free market economic systems, was easy prey for schemes that enticed massive rates of return for little investment. And, remember, pyramid schemes pay off the earlier investors, so there was a great deal of "evidence" for people to invest in these schemes. Why stop investing while people around you are getting rich (sound familiar)?
There is another issue involved as well. Albanian history is long and tortured and previous to the "experiment" with Communism, Albania was a backwards province of the Ottoman Empire. So, long before Communism was imposed on the country in the hands of a mad dictator, it was isolated from the rest of the outside workd because of its position in the Ottoman Empire.
So, for 500 years, Albania was cut off from the outside world. Its people, except for a small minority, were not exposed to the rest of Europe and the development of free market capitalism through the Renaissance. This history, combined with the recent Communist history, made Albania a prime target for "get rich quick" schemes.
We will discuss this economic illiteracy more tomorrow.
Have a great and fraud-free day.
http://www.tauskvega.com
------------->>>>>>>>>>>>>>>gene tausk
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