Pages: 1
HYIP is still exist because there is demand of it
(Click here to view the original thread with full colors/images)
Posted by: highyieldbiz
HYIP is still exist because there is demand of it. In fact the
supply of hyip programs are so short compare to the demand of it.
We are certain that HYIP will exist forever locally or
international with or without internet as long as human still
have greed and hope to be rich. Every human wants a better life
with more wealth, this inner inherent greed that drives every
human to be interested with any high yield return program whether
it is a scam program or otherwise. Probably in the future after
its system has been perfected, HYIP will be legalized just like
other gambling, lotto, forex or multi level program. HYIP has a
combination of these older money making elements: uncertainty,
probablity, make rich for some make poor for others, forecast,
analysis etc.
Posted by: edward
I agree and disagree.
I agree that HYIPs will continue to thrive simply because there is a huge demand for them. Probably only 2% of internet users even know they exist, but the demand is extraordinary.
I disagree that they will be made legal to run, especially in the US. Simply because there is no regulations in HYIPs. The US is not going to allow anyone to create a programs and simply pay people back if they feel like it.
Edward
Posted by: forwardone
I would imagine that in most of the more `advanced` countries legalisation also means strict controls, tight regulations etc.
In a sense, that would work against HYIP`s, even the legitimate ones. Higher returns = higher risks. Would these programs be able to take those same risks if controls came in?
I doubt it.
Geoff
Posted by: LukAnt
Dear masterful, you've hit "the bull".
Government intervention and regulation (or private insurer's one - it doesn't matter) is necessarily required to provide deposit insurance because otherwise insured firm have strong incentive to take more risky projects (since its liability is insured then its actual liability incurred can not exceed the firm's liquidation value even in the worst case) and therefore an insurer (private or governmental) is exposed to a much greater risk of actual need to execute its insurance obligations. Thisis why regulation rules imposed on an insured firm restrict in some ways the risk an insured firm can bear and therefore they certainly restrict its profitability too. In addition, insured firm must bear the burden of paying for the monitoring carried out by an insurer. All these above significantly restrict potential risk for investors of an insured firm but in the same time all these inevitably reduce its profitability too.
Therefore HYIPs will actually (and quite naturally) stop being "high yield" if insured/regulated, or they continue to be "HY" but with the same degree of risk for us, investors.