₦airaland Forum

One potent reason MMM has grown this well is attributable to the sophisticated organisation employed to stabilise the inflow and outflows. It is important to recognise that the disintegration of any financial setup can be initiated quickly, by spreading wrong info about it.

Imagine the havoc that will happen should word get out today from cbn that first bank or any bank is distressed. Every customer of first bank will troop to first bank to request for all their cash, and the bank will go bankrupt because it will not be able to pay everybody.
Aware of the power of false info on the stability of any financial institution, The financial regulators, have begun a massive publicity against MMM.

MMM is not an investment as is said, even though some wealthy Nigerians have taken advantage of it as such because of the systems design made to give back 30% plus help amount back after 30days of helping some other member of the community.

MMM is designed primarily as a help community. And the regulation is for members to participate with their spare funds so that in the case of a shut down for example from government orders, it will cause only minor nervousness.
The SEC warning is for folks pouring all their life's work and earning into MMM simply because the 30% returns is almost inevitable.

Whilst the banks are enjoying the transfer of funds from participant to participant on MMM because of the generated #100 charged per transfer, it is important for MMM participants to adhere to the fundamental concept of MMM.

It's strictly for mutual help and should be partaken in with spare funds only.

manuelrukky:
One potent reason MMM has grown this well is attributable to the sophisticated organisation employed to stabilise the inflow and outflows. It is important to recognise that the disintegration of any financial setup can be initiated quickly, by spreading wrong info about it.

Imagine the havoc that will happen should word get out today from cbn that first bank or any bank is distressed. Every customer of first bank will troop to first bank to request for all their cash, and the bank will go bankrupt because it will not be able to pay everybody.
Aware of the power of false info on the stability of any financial institution, The financial regulators, have begun a massive publicity against MMM.

MMM is not an investment as is said, even though some wealthy Nigerians have taken advantage of it as such because of the systems design made to give back 30% plus help amount back after 30days of helping some other member of the community.

MMM is designed primarily as a help community. And the regulation is for members to participate with their spare funds so that in the case of a shut down for example from government orders, it will cause only minor nervousness.
The SEC warning is for folks pouring all their life's work and earning into MMM simply because the 30% returns is almost inevitable.

Whilst the banks are enjoying the transfer of funds from participant to participant on MMM because of the generated #100 charged per transfer, it is important for MMM participants to adhere to the fundamental concept of MMM.

It's strictly for mutual help and should be partaken in with spare funds only.

Nice piece..very true...but i dont think any rich folk can take advantage because the maximum help you can pledge to provide in the community is 2million naira...