How did those HYIP earn if they are paying on a high interest?

@jamed28 (1909)
Philippines
May 17, 2010 3:37am CST
I just keep wondering, how did those HYIP site get their money and able to pay their investor if they are paying a very high interest? If you tried to inquire on local banks you can see that time deposit or investment usually earn only 1% monthly. But in most HYIP site they pay 1% in a day. Well if some of you knows the magic behind this HYIP, if there are any. please do share it here. By the way for those who don't know HYIP, it means High-Yield Investment Program.
2 responses
@klipjobs (24)
• Indonesia
18 May 10
could also be a combination of classical pyramids and money games. so that the participants who joined in the begining will most likely have obtained a return of investment, whereas the latter is less likely to join the investment return. to invest in hyip, a lot of people use the strategy of hit and run.
• Russian Federation
17 May 10
Classical piramide.