HYIP

The acronym HYIP means High Yield Investment Program in English, i.e. program of Investissement high-output. These investment plans are generally offered on Internet. The HYIP accept investment very weak, while promising interests very high (until several percent per day).

The HYIP never function very a long time. They affirm to invest the money collected on the stockmarkets, or the market of the currency S (FOREX).

In fact, the financial markets pay much less than what the HYIP are ready to pay. Best the traders makes an average of 20% per annum. Warren Buffett has become the 2nd man richest of the world by making 25% of annual average for 40 years.

The HYIP propose higher rates systematically (of 2% per month, with several percent per day!). Sometimes however, they manage to function a certain time, up to 2 or 3 years. How do they make? In fact, they invest little or nothing on the financial markets. In the place, they use one swindles famous which consists in using the money of the new investors to pay the old ones. This swindles is illegal in the majority of the countries, thus the HYIP are often based in tax shelters.

While using this swindles, a good growth of the funds invested in the HYIP allows to pay high rates during a certain time. However, so that this system functions in the duration, that supposes that the invested funds increase perpetually, which is impossible because they will end ineluctably up being stabilized. The programs thus end systematically up closing. When the administrators of the HYIP note that they will not be able to pay the new investors any more, they close the program and often leave with the money collected in all impunity.

Certains HYIP proposes very high rates (40 to 100% per month). They never last a long time because that supposes a growth of the funds of the enormous HYIP (new old investors having to pay raised interest). They thus disappear very quickly.

Other HYIP are more intelligent and propose rates of a few percent per month. A growth of the funds invested in the HYIP of a few percent per month can last a long time and these systems can last 2 or 3 years before it is realized that it is swindle. Their duration is all the more lengthened that many are the investors who after payment, take confidence in the program and decide to reinvest.

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