There are several terms unique to bubble blogs. The following is a list of some of the more common terms compiled from a list provided on Patrick.net:
· Schadenfreude – Feeling joy in the misfortune of another. The introduction is an examination of this phenomenon in bubble blogs.
· Real-Estate-Industrial-Complex (REIC): Variant of Eisenhower’s Military-Industrial Complex, referring to the collection of related industries dependent upon residential real estate transactions such as building, lending and sales.
· Homedebtor – A homeowner who is overextended with a mortgage they cannot afford often due to their own desires for more home or more spending money.
· Serial Refinancer – A Homedebtor relying on mortgage refinancing to maintain artificially low debt service payments or fuel a lifestyle of consumption.
· Loanowner or Loanership – Terms used to convey the reality of home ownership for overextended homedebtors who are in essence renting from the lender. A related expression is “Equity is fantasy and debt is real.”
· NEOs – Negative Equity “Owners” – Homedebtors who owe the bank more than what their property is worth. It is similar to REO or Real Estate Owned, the acronym used by lenders to describe a property they have acquired through foreclosure.
· Sheeple/Sheople – Derogatory term for the vast, clueless, herd-following instincts of the general public. Sheeple are easily manipulated by the fallacies promoted by the real estate industrial complex and often end up slaughtered by the market.
· Knife Catcher – A buyer during the decline attempting to time the bottom and catch a price reversal. Since prices generally decline for long periods in a real estate slump, there are many buyers who buy too early and pay too much thus causing financial injury.
· Alligator: Term popularized by Robert Kiyosaki. Refers to any unsuccessful investment that “eats” far more income than it generates. During the bubble the cost of ownership for residential real estate far exceeded any income or savings from rent making all bubble purchases alligators.
· Flip – a Property purchased to resell quickly for a profit. Flippers are derided for bidding up house prices and preventing normal families from purchasing houses for reasonable prices while often adding no value to the property.
· Pergraniteel™: Pergo fake wood floors, granite countertops, and steel appliances. It is an amalgamation of flipper’s most popular home improvements when improvements were made at all.
· Wishing price – An unrealistic price a seller establishes for their property on the market due to need or greed. A house for sale at a wishing price does not sell, and it often results in the seller chasing the market down and selling for far less than they would have if they had priced the house properly initially.
· Floplord – A speculator who cannot sell his flip for either the wishing-price (greed,) or enough to cover the existing mortgage (need,) so finds himself in the position of becoming an unintentional landlord.
· Bagholder – A homeowner unable or unwilling to sell a property that is declining in value.
· Jingle Mail – Term coined by early bubble prognosticator Bill Fleckenstein, referring to homeowners who have “mailed in the keys because they can’t make the payments and no longer have any equity in their homes.”
· Liar Loans – Also known as stated-income loans. A type of loan used when a borrower could not qualify for a loan based on their real income.
· Suicide loan – Also known as Option ARM or Negative Amortization loan. A type of loan where the principal grows with each payment.
· MEW – Mortgage Equity Withdrawal – Any form of increased property debt. This can result from direct cash borrowing through refinancing or home equity lines of credit (HELOC,) or it can result from loan terms with negative amortization. MEW fueled a great deal of consumer spending during the housing bubble.
· Liberated Equity – An Orwellian industry-friendly euphemism for MEW originally coined by CAR Vice President and Chief Economist, Leslie Appleton-Young.
· Kool Aid – A reference to the pathological beliefs of people who believed the rally in house prices would continue forever.
· MIRAGE (Moneyed Immigrants, Rich Ancestors, Generous Expatriates): Acronym to lampoon the bulls’ argument that housing demand is being supported by cash-rich immigrants, wealthy parents and transplants from other states.
· ILLUSION (Irrational Lending Lax Underwriting Speculative Investing Ownership Nonsense): Acronym to describe what drove housing demand during the bubble rally.
· CHUMPS (Cunning Hard-eyed Ultra-savvy Market ProfessionalS): Acronym to lampoon the bulls’ argument that most recent buyers who used exotic loan products are market-savvy professionals who fully understand the downside risks and are financially prepared for them.