Josh Giersch has a wonderful financial devil’s dictionary up today. Here are some of my favorites:
What stock analysts issue after slapping a "buy" recommendation on a stock that subsequently goes to zero.
Credit default swap
A financial instrument where one party pays a fixed stream of semiannual payments, and in return for the payments receives a massive counterparty risk headache.
What you wear on your nose when going out to buy Icelandic kroner.
The look on a trader’s face on bonus day.
A way for banks to borrow money from the government at 9%, then deposit the money with the Fed and earn 0.5%.
Any mortgage granted by Wachovia or WaMu.
To see the final entry, on "yield spread", I’m afraid you’ll just need to check it out for yourself.