programs differ from other pooled investment plans, like mutual funds? Well, even the most affordable mutual funds have minimum investments of around $1,000-$2,500 USD. With high yield investments, however, there is typically a very low minimum investment (less than $100 USD) or no minimum at all. The 'investment brokers' in the case of the average high yield investment program pool all the contributed funds and convert real currencies into some form of electronic pseudo or virtual currency.

Doesn't sound to bad so far, hunh? I mean it makes sense that to open the door to smalltime investors some type of e-currency may grease the wheels and make profit realizable for every member. Some high yield investment programs will have contributors deposit money in a 'prime bank' account, either way they tend to make great claims about how the juggernaut banks regularly make zillions off of interest and that the little guy (or gal) has no hope of reaping such benefits unless they all pool their money together.

The bottom line

Most High Yield Investments are just investments in someone else's bank account and you will never see a dime of your money again. What known as Ponzi schemes, a type of pyramid scheme where early investors collect money from newer investors and then fodl up shop, leaving the newest investors with nothing but a feeling of violation.

For more information on HYIPs check out the Wikipedia entry at http://en.wikipedia.org/wiki/HYIP. For a comprehensive list of known HTIP scams as well as thought provoking discussion on the matter, see the HYIP Scam Search at http://www.stochasticsoccer.com/kakarukeys/.


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