PDA

View Full Version : "Residential Investment Spending"


Disneefun
10-27-2006, 01:53 PM
I was eating lunch today and watching CNBC and the analysts were talking about consumer spending driving the economy and the savings rate being below zero, the housing market slowdown, etc. And one analyst agreed and said that the economy is definitely slowing because the housing slowdown has "eroded consumer's residential investment spending."

At first I went "Huh?" but then as they continued to talk I figured out that "residential investment spending" was the dressed up way of saying "pulling equity out of your house to buy a big screen TV", basically. I had to laugh because I've never heard HEL's or HELOC's referred to this way. I just got a chuckle out of the dressed up terminology. I guess it's supposed to make it sound like a true "investment strategy", or a way of managing your money, rather than what it is (in some cases) which is putting your house on the line for luxury items.

Don't flame me and I don't want to start a debate about the widsom of HEL's/Heloc's. I know there are times when taking out a HEL is the best/only strategy, but these guys were clearly talking about taking out money to "spend on stuff" and keep the economy growing, not pay off medical bills or deal with some other crisis. I just found the wording humorous and wanted to share b/c I know others on here will probably find it amusing, too.

Chicago526
10-27-2006, 03:00 PM
I always found it odd that HEL's are called HEL's at all, back in the day they were known by another name, a second mortgage!

MrsPete
10-27-2006, 03:38 PM
At first I went "Huh?" but then as they continued to talk I figured out that "residential investment spending" was the dressed up way of saying "pulling equity out of your house to buy a big screen TV"Yeah, they have to "dress up" the term because if they called it by a more truthful name -- maybe, putting your family's house on the line so you can go on vacation, or maybe Giving away your living room -- people wouldn't be flocking to them in droves.

Anyone read 1984? The people in the Ministry of Truth were working on a new language, and the highest form was Duckspeak. When a person used Duckspeak, he didn't have to use his brain -- he simply repeated wrods that were politically correct. The idea was that neither the speaker nor the listener would actually think about the concepts involved. While that was fiction, it seems to be a reality these days; many political and business terms are now disguised to sound more acceptable.

Kim1964
10-27-2006, 05:11 PM
Another new term DH heard the other day: Preconstruction real estate...formerly known as a building lot for sale :).

kinntj
10-27-2006, 06:23 PM
It really is a way to get people to not think badly about them. It's a mind trick the way they disguise those ugly defintions.