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Surprisingly, 'greed' is not the predominant motivator for High Yield Investment Programs.

In talking with HYIPers 'desperation' has taken over that terrible first position. Desperation to change to get out of debt or avoid bankruptcy or repay monies gambled or wasted. Desperation to pay medical bills or avoid foreclosure or market losses or to keep a marriage together.

Greed by definition is an overwhelming desire to have more of something than is actually needed; like money. Let's focus on money. Greed then pre-supposes the existence of an adequate supply of money if the definition (Encarta) says it is the desire to have more than is actually needed. But Encarta defines 'desperation' as recklessness brought on by great urgency or anxiety. Most HYPER's have money, never enough, but the emotion is to grow it out of desperation to meet an overwhelming urgent need rather than just a desire. Clutching at straws of desperation makes hypers loose their sense of reality. The originators of HYIP programs understand those emotions only too well.

HYIPs fall into two main categories; professional and amateur. The amateurs are in the minority. The pros go to extraordinary lengths to hide themselves and then often go to similar lengths to almost prove their programs cannot be real. The less real they make them the more desperate investors appear to want to participate. Lemmings to the cliff all over again.

Google the term HYIP Forums and you will see a long list of forums that all discuss HYIPs in one form or another. Who is to say that some these Forums themselves are not associated with the HYIPs. Some Forums appear to rank HYIPs. You have to wonder how one HYIP gets a higher ranking than another. A HYIP is either paying on time or it has problems or it has closed down and gone. When it has gone it's too late.

What I found so surreal after some years are dabbling in HYIP's is how stupid I could have been. I only used risk capital and I did win sometimes. Then in the HYIP Forums I saw people complaining they had been scammed and ripped off. When a program offers 1% a day its mind blowing. When it offers 60% a DAY that's when you have to surely have to know it's a Ponzi. So if investment is so obvious it can only be Ponzi that means investors must be aware of the gamble. Does this mean that the investors are themselves the scammers. A sort of unwitting role reversal? Members put money into such programs hoping they will get a positive return not from the company but from the other new down line members before it goes down. In fact there are some sites that self-describe themselves as Ponzi in their FAQs or even in their name. Why? If you participate in a site that describes itself as Ponzi then you the member could be an accomplice to defrauding new participants. It's a legal nightmare chain reaction of course where affiliates who benefit financially from marketing can also be held responsible.

So who is to blame for losing you your money? No HYIP site I know of provides a provable guarantee of return. There are some HYIPs that say there is a bank guarantee on your capital but where is the piece of paper that proves that guarantee? Where is the insurance policy behind it? Should we be child-like and say they are to blame because they abused our emotions or because we did not bother to do any due diligence? Investors in the stock markets, Forex, full service brokers, and all sorts of other regulated markets lose millions as well HYIPers. They can only complain if there is provable fraud or wrong doing.

But what personal investment planning should you do if you must have a decent return on your money? The answer is quite simple. First, you eliminate the emotions of desperation and greed and then sit down and analyze your tolerance for risk, return and how much capital you have to diversify and then do research to find vehicles that meet your own criteria and finally make informed decisions and be prepared to learn from your mistakes.

Of course saying it and doing it are two entirely different things. Given the world outlook for 2008/9 with increasing government control, loss of job security and with the wealth gap widening there is no reason to believe that desperation should not continue to be a dominant emotion. That's why HYIPs will continue to fleece the lambs and the lambs will continue to bleat sorrowfully all the way to the sheering house for the foreseeable future.

Martin Langley

Martin Langley was born London, England. Background in appraisal and management. Relocated to Dominican Republic to manage http://SecureOffshoreSavings.com a non-traditional savings vehicle with 20%-30% a year returns and 4 month to 12 month terms. Not a HYIP. A genuine passive income vehicle. Email and phone number on website.

Source: www.articletrader.com