Biggfredd,
Your intial post in this thread does hold some valuable points, but they do in no way relate to pips.
Your post is full of assumptions which makes it clear that you haven't loaned anything to pips and if you did, you haven't tried to understand what its all about.
If you would have loaned USD10k on 1/1/2005 that would have bought you roughly (not exactly but for argumentary sakes) 400 units.
These units form your principle and they have a shelf life of 180 days.
After that, as far as you are concerned they faporize.
However during this period of 180 days you were to receive 1.9 (initially) later 1.85% interest per day that NYSE was open for trading.
Meaning the interest is paid on the full principle during the whole 180 days.
Now if you take out the holidays and the weekends, 180 calendar days may amount to roughly 125 trading days,
The rol produced can either be reinvested or taken out, but if you take it out to get your investment back, you would need about 50-55 days (trading) to get your principle back.
After that, you would still have your principle on loan so from then on if you would decide to reinvest your returns, the principle would grow upwards from USD185 a day, but at the end of the first 180 days, your principle would decrease with 10k.
'
This was the situtation how pips functioned.
Your remarks about why someone would loan from someone else at a rate of 2% a day instead of whatever rate he could get from a bank or other institution, does also show that you do not understand what it was all about for BM.
I hope you see that you made too many assumptions not based on the pips situation as it was.
I'm not going to argue about % returns and stuff like that.