Read on Twitter
1/ Short thread on ponzi schemes.
Since tumbling into recession in 2016, Nigeria has been flooded by ponzis (MMM, Twinkas, Loom). One theory is that there is a demand for ponzis among Nigerians. They see these schemes as a way to cope with a bad economy: http://www.nasajournal.com.ng/journal_articles/vol_16/issue_1/paper_5.pdf
Since tumbling into recession in 2016, Nigeria has been flooded by ponzis (MMM, Twinkas, Loom). One theory is that there is a demand for ponzis among Nigerians. They see these schemes as a way to cope with a bad economy: http://www.nasajournal.com.ng/journal_articles/vol_16/issue_1/paper_5.pdf
2/ One study found that 72% of all business education students at a Port Harcourt university participated in ponzi schemes. Most are self-aware participants. They realize that a ponzi is a scam and that it will crash: https://www.researchgate.net/publication/321677739_BUSINESS_EDUCATION_STUDENTS%27_PERCEPTION_OF_THE_DURABILITY_AND_IMPORTANCE_OF_ONLINE_PONZI_SCHEMES
3/ We tend to associate speculation & bubbles with economic growth (i.e. late 90s tech mania).
But in this case, the surge in speculative behavior is a symptom of underlying stagnation. Zero-sum betting games are proliferating because Nigerians are getting more desperate.
But in this case, the surge in speculative behavior is a symptom of underlying stagnation. Zero-sum betting games are proliferating because Nigerians are getting more desperate.
