'Subprime' is the word of the year - Top Stocks Blog - MSN Money
 
Search Top Stocks:

'Subprime' is the word of the year

Posted Jan 07 2008, 02:18 PM by Matt Koppenheffer
Rating:
Filed under: ,

No, seriously, the American Dialect Society annually anoints one word as the word of the year based on a vote from the members of the organization, and "subprime" took the trophy this year. The ADS defined subprime as "an adjective used to describe a risky or less than ideal loan, mortgage, or investment."

Professor Wayne Glowka, a member of the society, was quoted as saying: "When you have investment companies losing billions of dollars over something like bundled subprime loans, then you have to consider whether it's important." Amen to that!

It's hard to disagree with the choice -- subprime, which was mainly a word of bankers prior to this year, has been on the tip of nearly everyone's tongue. The whole fiasco has been a cascading mess of subprime lenders going bankrupt, homebuilders and broad-line mortgage lenders tanking, and investment banks writing off billions in bad securities.

The question this raises for me is whether pessimism over the situation will start to outrun the actual problems. Remember back in 1999 when taxi drivers were talking about Internet stocks? In retrospect that was a pretty good signal of the peak of optimism. So how about when we start to hear anyone and everyone talking about subprime?

As I browse the landscape on CAPS, it doesn't look like investors are starting to change their opinions very much. US homebuilders like KB Home and NVR are still largely carrying one star ratings and investment banks such as Bear Stearns and Citigroup aren't faring much better. And Countrywide Financial, the largest home lender, is still the subject of a lot of pessimism, including many that still think it could go bankrupt.

I don't pretend to have a timeline for how long the current storm cloud will last, but it will pass at some point, and likely reveal that pessimism went too far in some places. For now, though, subprime is the word of the year and everybody is holding their breath to see how deep the rabbit hole runs.

 

(Full disclosure: I do not have a financial position in any of the companies mentioned.) 

Comments

 

Sir,

I BEG to differ concerning the Word of the Year. The people @ Mirriam-WEBster Dictionary, who have LONG ExPerience in this matter, say that the WOY is "W00T" - a celebratory InterJection that is exclaimed after one WINS BeauCoup Points playing a moronic Computer GAME.

MY choice for WOY would again be M-WD's 2005 WOY - INTEGRITY, which was ExTremely LACKing among our Political,Governmental,Business & Social Communities. The main problem is we have NO integrity - we have believed our own CONvenient LIES for far too LONG; and  now, it's TIME to PAY - The PIPER

Other words that SCORED HIGH in 2007 include : facebook,conundrum.quixotic,blamestorm,sa,Sardoodledom,apathetic.Pecksniffian,hypocrite,& charlatan.

The 2005 M-WD words are Equally 'Prophetic' and, well PATHetic.

Don Lee Ferk

Hampton, VA

Please find Below the Documentation for what I have written above.

1. w00t (interjection)

expressing joy (it could be after a triumph, or for no reason at all); similar in use to the word "yay"

w00t! I won the contest!

Click on each of the other words in the Top Ten List for their definitions in either Merriam-Webster's Online Dictionary or Merriam-Webster's Open Dictionary:

facebook

conundrum

quixotic

blamestorm

sardoodledom

apathetic

Pecksniffian

hypocrite

charlatan

Merriam-Webster's Words of the Year 2005

Based on your online lookups, the #1 Word of the Year for 2005 was:

1. integrity

Pronunciation: in-'te-gr&-tE

Function: noun

Etymology: Middle English integrite, from Middle French & Latin; Middle French integrité, from Latin integritat-, integritas, from integr-, integer entire

1 : firm adherence to a code of especially moral or artistic values : INCORRUPTIBILITY

2 : an unimpaired condition : SOUNDNESS

3 : the quality or state of being complete or undivided : COMPLETENESS

synonym see HONESTY

Click on each of the other words in the Top Ten List for their definitions in the Merriam-Webster Online Dictionary:

refugee

contempt

filibuster

insipid

tsunami

pandemic

conclave

levee

inept

How does a word get into a Merriam-Webster dictionary?

This is one of the questions Merriam-Webster editors are most often asked.

The answer is simple: usage.

Tracking word usage

To decide which words to include in the dictionary and to determine what they mean, Merriam-Webster editors study the language as it's used. They carefully monitor which words people use most often and how they use them.

Each day most Merriam-Webster editors devote an hour or two to reading a cross section of published material, including books, newspapers, magazines, and electronic publications; in our office this activity is called "reading and marking." The editors scour the texts in search of new words, new usages of existing words, variant spellings, and inflected forms—in short, anything that might help in deciding if a word belongs in the dictionary, understanding what it means, and determining typical usage. Any word of interest is marked, along with surrounding context that offers insight into its form and use.

Citations

The marked passages are then input into a computer system and stored both in machine-readable form and on 3" x 5" slips of paper to create citations.

Each citation has the following elements:

the word itself

an example of the word used in context

bibliographic information about the source from which the word and example were taken

Merriam-Webster's citation files, which were begun in the 1880s, now contain 15.7 million examples of words used in context and cover all aspects of the English vocabulary. Citations are also available to editors in a searchable text database (linguists call it a corpus) that includes more than 70 million words drawn from a great variety of sources.

From citation to entry

How does a word make the jump from the citation file to the dictionary?

The process begins with dictionary editors reviewing groups of citations. Definers start by looking at citations covering a relatively small segment of the alphabet — for example gri- to gro- — along with the entries from the dictionary being reedited that are included within that alphabetical section. It is the definer's job to determine which existing entries can remain essentially unchanged, which entries need to be revised, which entries can be dropped, and which new entries should be added. In each case, the definer decides on the best course of action by reading through the citations and using the evidence in them to adjust entries or create new ones.

Before a new word can be added to the dictionary, it must have enough citations to show that it is widely used. But having a lot of citations is not enough; in fact, a large number of citations might even make a word more difficult to define, because many citations show too little about the meaning of a word to be helpful. A word may be rejected for entry into a general dictionary if all of its citations come from a single source or if they are all from highly specialized publications that reflect the jargon of experts within a single field.

To be included in a Merriam-Webster dictionary, a word must be used in a substantial number of citations that come from a wide range of publications over a considerable period of time. Specifically, the word must have enough citations to allow accurate judgments about its establishment, currency, and meaning.

The number and range of citations needed to add a word to the dictionary varies. In rare cases, a word jumps onto the scene and is both instantly prevalent and likely to last, as was the case in the 1980s with AIDS. In such a situation, the editors determine that the word has become firmly established in a relatively short time and should be entered in the dictionary, even though its citations may not span the wide range of years exhibited by other words.

Size does matter

The size and type of dictionary also affects how many citations a word needs to gain admission. Because an abridged dictionary, such as Merriam-Webster's Collegiate® Dictionary, has fairly limited space, only the most commonly used words can be entered; to get into that type of dictionary, a word must be supported by a significant number of citations. But a large unabridged dictionary, such as Webster's Third New International Dictionary, has room for many more words, so terms with fewer citations can still be included.

Authority without authoritarianism

Change and variation are as natural in language as they are in other areas of human life and Merriam-Webster reference works must reflect that fact. By relying on citational evidence, we hope to keep our publications grounded in the details of current usage so they can calmly and dispassionately offer information about modern English. That way, our references can speak with authority without being authoritarian.

Send a Comment

Comments must be directly related to the blog entry. Comments with offensive language will be deleted. Your e-mail address won't be displayed.

(please, no HTML tags. Web addresses will be hyperlinked):