Tue June 12, 2012
From Our Readers: Less Hedginess, More Neology
"The hedginess will continue unabated, because our pols aren't gonna get all regulationy, as there isn't any cashiness or kickbackitude to be had via enforcementism. Say hello to an economy that will soon be all recessiony. Only a lot more so."
"'Hedginess' riffs on 'truthiness,' the word the comedian Stephen Colbert invented in 2005. Truthiness means favoring versions of events that one wishes to be true, and acting as if they were true, while ignoring facts to the contrary that are staring you in the face. Fake hedges are to real hedges as 'truthiness' is to truth. Hence 'hedginess.' JPMorgan's trades got around the Volcker rule, which tries to prevent banks from speculating in financial derivatives, by labeling as 'hedges' bets that were clearly not hedges."
(Marissa Alioto is an intern on NPR's Social Media Desk.)