mydoghatescats

Bill Gross Says 'Jump.' Will the Fed Once Again Say 'How High'?

When I'm dictator I will immediately issue an edict BANNING, henceforth and forever more, all euphemisms for borrowing or loaning money.

No more of this:
The BFLS (Big Fat Liability Sheet) Corporation announced today that its 31 October 2008 bond offering will be $1 billion.

They will have to call it what it is:
The Big Fat Liability Sheet Corporation announced today that it will go to the bond market on October 2008 and attempt to borrow $1 billion.

When we rename something it matters.

When I go to the bank to borrow money to buy a house, I say "I took out a mortgage." "It's mortgaged" has taken on a clear meaning: it's not mine until I pay back the loan. This too is euphemistic, but "taking out a mortgage" is a lot closer to the truth (I borrowed money) than "My next bond offering will be $1 billion." That makes it sound like you're the one doing the world, or in this case the capital markets, the favor. Yes, widows and insurance companies and pension funds need a place to put their capital in order to earn a return that matches their liabilities. But they are the ones offering, not the borrower. They are offering cash and you are asking to borrow it.

Am I crazy? Am I the only one who thinks that one of the reasons we have periodic debt meltdowns is because we are so steeped in debt, we can't even call a loan . . . a loan.

Elect me dictator and I will implement these changes immediately.