High Yield Investment Programs (HYIPs)
| Is everybody investing in HYIP completely stupid. The programs are not high risk, they are guaranteed to fail. |
A friend just showed me a HYIP (High Yield Investment Program) and proclaimed that they would one day be rich.
Like um, no.
The whole HYIP idea is guaranteed to make you poor not rich. Let me school you right now, any investment program that returns you interest daily is a scam full stop.
extra information
Took a look at this myself since I had never heard of a HYIP. Seems there is a good reason.
Wikipeda comes up with the goods on this one:
A High Yield Investment Program, or HYIP, is a often type of pyramid scheme normally offered via the Internet. HYIPs typically accept deposits as low as $1 while promising astoundingly high returns. Online HYIP schemes rarely last for the long term. Overwhelming number of cases suggest that HYIPs are Ponzi schemes.source : http://en.wikipedia.org/wiki/High_Yield_Investment_Program
A Ponzi scheme is where returns are payed out of invested cash from new members. Its easy to see that this model is not sustainable and will crash at some point.
So many scams out there 
High interest equals high risk
Ho, thats amazing any body would get taken in by these schemes.
A friend in finance once told me that if the investment returns higher than the interest on current bank loans then there is going to be some added risk involved.
That said, one of my funds returned %15 last financial year and I have seen some return as high as %28 over the 1-2 year term. Most seems to level out at the 5-10 year scale.
So think about it. If an investment returns %28 one year but averages a %7 return over 10 years than some years could well be negative.
HYIP forum
Whoa! How dumb are some people.
I want to a HYIP forum to check this stuff out and some people seem to be deluded into thinking that even though all the other times they have invested, they lost, they just have to keep trying until they find the perfect investment.
lol, the ads even state "Stop Losing Money, Start Making Money". How much of an obvious indication is that
Can someone say 'dead horse' ?
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