At 2:10 PM -0400 on 7/17/01, Viking Coder wrote:
> The acronym stands for High Yield Investment Program.
Scam, for the most part. In actual finance, of course, the higher the
"yield" is, of course, the riskier the investment is, so when someone
"guarantees" a high "yield" on something it's a contridiction in terms.
When I see "HYIP" in text, I swap "pyramid-scheme", and get no visible loss
of data...
"High Yield", is cribbed from, of course, so-called junk-bonds,
euphemistically called, in formal finance circles, "high-yield" bonds.
The fact that most "junk" bonds had proportionately higher total investment
returns and interest rates because government "prudent man" regulations
forbid their purchase by pension funds and other institutions -- rather
than the dictates of actual financial theory -- further compounded their
eventual fall from grace when said regulations were revised when some
people made "too much" money, only compounds the mythos of the "High Yield"
"Investment" "Plan".
Whether the Fall of Milken was justice, hubris, or a mere witch-hunt is
elided here, for discussion at some other time, in some other venue...
Cheers,
RAH
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R. A. Hettinga <mailto: [EMAIL PROTECTED]>
The Internet Bearer Underwriting Corporation <http://www.ibuc.com/>
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"... however it may deserve respect for its usefulness and antiquity,
[predicting the end of the world] has not been found agreeable to
experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'
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