Investment Sites

The way that banks are able to pay interest to investors is by giving the investors' money away and charging interest higher or equal to what they give back to the investor to the person borrowing money. So on the same basis these companies must be putting your money somewhere or to someone who repays massive amounts of interest, but why would a company needing money pay over 20% a week back when banks and building societies charge much less. If this is so then the scheme would have very few people wanting to borrow so wouldn't get enough money to repay interest to customers. The schemes you talk of sound very much like 'Ponzi Schemes'. The Ponzi scheme was invented by Charles Ponzi who would set up a business offering ridiculous amounts of interest to investors. The scheme works mainly on the greediness of people wanting to make a fast buck, an advert for a high rate of interest is usually shown-saying the source of money is off-shore investment then a few people put a little money in to test the water. After a month or so they receive a statement saying how much interest they have made and that they can cash out now OR they can keep the money in for a further few months at an increased rate of interest. Delighted many people will just leave their money there with the scheme owner, and therefore not notice that their money has just gone towards paying the interest to other investors leaving the scheme. Those happy and content with the scheme also tend to put more and more money onto the scheme whilst also convincing friends and family to do likewise-the extra money entering the scheme is used to pay the people who are leaving it. No scheme of this sort can survive for ever and will eventually flop due to one of three factors, either the scheme owner takes all the money and vanishes taking a new identity etc, the police find out and stop the scheme, or the debts of leavers cannot be paid by the new members entering the scheme. Either way the scheme will fail and the majority will be unhappy and loose money. I wouldn't recommend this.

hi syfarisk again.. haha.. just want to know if you already have done it to some sites.. ive heard it but i havent tried it.. =)