On the Money From the March 7, 2008 print edition There seems to be no end to the desire of one group of people to attempt to confuse another. For example, doctors use jargon to confuse patients — and maybe to justify high fees. Acronyms that acquire phonetic pronunciation in government are enough to send even the brightest of civilians babbling into the hills. In fact, an equally frightening phrase describes the process of creating pronounceable acronyms. It’s called “acronym-initialism-hybriding.” Of course, the world of finance is no different. Here’s a look at some of the latest jargon, slang and acronym-initialism-hybrids. Aunt Millie — an uneducated or unsophisticated investor. The term is considered a derogatory remark in the financial sector, often used to refer to poor...
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On the Money From the February 1, 2008 print edition There’s an old joke that says, “Want a hot tip? Buy low, sell high.” Of course, that “tip” will only be “hot” if the price is also rising. Recent indicators all around us are signaling a very cool market. Some speculate a recession is near. That usually means falling stock prices. Therefore, the old hot tip of “buy low, sell high” might not come to pass anytime soon. So, how about a new tip? Sell high, buy low. In the dice game of craps, that’s called betting against the dice, or “don’t pass.” In the more scholarly circles of finance, it’s known as the “short sale.” In other words, while everyone else is bemoaning the...
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On the Money From the January 4, 2008 print edition Colorado has new foreclosure laws, as of Jan. 1. Colorado House Bill 1157 went into effect then, enacting dramatic changes in an attempt to improve and simplify the foreclosure process, while also providing property owners with more realistic prospects of retaining ownership. The essence of the changes revolves around two words: “cure” and “redemption.” The cure period is the time between the commencement of foreclosure and the initial sale date. This time span has been increased from 45-60 days to 110-125, (215-230 for agricultural land). Owners now have about four months to work with their lender and cure the default, stop the foreclosure and retain their property. However, the concept of “redemption” — which is...
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On the Money From the December 7, 2007 print edition The mortgage credit crunch not only is affecting interest rates quoted to home buyers, but also is triggering changes in less-visible areas, such as minimum credit scores — specifically, the ubiquitous FICO score. FICO scores are the product of the Fair Isaac Corp. (founded in 1956 by engineer Bill Fair and mathematician Earl Isaac). The three major credit-reporting agencies supply them. Though there are other scores available, the majority of lenders still rely on the FICO. FICO scores range between 300 and 850. In the past, traditional ratings were as follows: excellent, more than 750; very good, 720 or more; acceptable, 660 to 720; uncertain, 620 to 660; and risky, less than 620. The “Classic...
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