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SALT LAKE CITY - They're words and phrases like "staycation," "mini-Madoff" and "shovel ready." These are the phrases we've created to understand how the recession is effecting us.
Before the Internet took over how Americans got their information, a buzzword like "mini-Madoff," which means someone who runs a small Ponzi scheme, would have taken years to become popular.
Peggy Lander, a partner at the advertising company Richter7, said, "The old ‘word of mouth' used to take a long time but now you can get it out to thousands of people literally in a day and start a movement pretty quickly."
Richter7 knows about creating buzzwords or tag lines. Lander says a good catch-phrase needs to be something that people can attach to.
"They've got some emotional reason that they're looking for something that makes them feel better about the situation that they're in," she explained.
One emotion a lot of people share is anger over AIG employees getting bonuses paid for with federal funds after leading the company to failure. Wells Fargo economist Kelly Matthews says as mad as it may make people, contracts signed within the company prevent us from doing much about it.
"These bonuses were no more earned and shouldn't have been paid, but we start changing contracts, we're creating a road that's a big problem," he said.
I asked Lander to help me create a buzzword to explain the rage people feel over AIG. We decided on the word "rage," except we spelled it "R-AIG."
"Put it on your Facebook and pretty soon you've got a little momentum building," Lander said. So, R-AIG, copyright Paul Nelson.
Buried under the news over the AIG bonuses, the Federal Reserve made a move that Matthews says could greatly improve the housing industry. It's buying up to $1.25 trillion in long term government securities and mortgage backed securities. He says more people will qualify for home loans.
"The markets will push those long term interest rates down, but the reason the markets will push them down is that the Fed is injecting so much liquidity in," Matthews said.
To explain this, Lander suggested the phrase "Injectorates," copyright Peggy Lander.
Here are some phrases you may have heard:
Zombie Bank: A bank that's no longer viable but being kept alive by federal funds. Ironically, the phrase was first created during the savings and loan crisis in the 1980s. So, the phrase has come back to life, as zombies tend to do.
Recessionista: Someone who have figured out how to stay stylish and chic on the cheap during tough economic times.
Shovel Ready: Projects that have been through the planning stages and construction is ready to begin.
Staycation: A vacation someone takes without going away from home.
Lipstick Effect: Finding cheaper and small things to do to improve and modify your home or appearance, like putting on new lipstick.
E-mail: pnelson@ksl.com
