“Hair Cut”: Financial Expression of the Day

 

In Finance land, there's no such thing as a good haircut unless you're doing it to someone else

In Finance land, there’s no such thing as a good haircut unless you’re the barber (Photo: galleryhip.com)

“Hair Cut”: verb phrase, in business and finance, to receive less than the amount due or expected on a financial obligation or investment (i.e. application of a discount to an amount owed or return anticipated).

Usage Note: Sharing some similarities with the gem of a phrase “Take a Hit”, this well-worn financial idiom is more versatile, and more widely used.  When you think about it, the haircut is a strange behavior unique to the human animal. Humans share 97% (or whatever) of our DNA with chimpanzees and although you’ll see a lot of people acting like monkeys, particularly in finance, you’ll never see monkeys getting a haircut.  But we humans just love getting our haircut. Something very relaxing and rejuvenating about someone tugging on your mane and snipping at it in tiny increments with a sharp pair of scissors.

Unfortunately, as is often the case with financial lingo, “haircut” has become an overused substitute for “discount” and as such has made its way into all forms of conversation where it really has no business being.  Finance geeks throw the term around for anything from a sale at Barney’s to short-changing a friend when repaying for last weekend’s bender. Continue reading

General Motors to Recall Every Car Ever Made…by Any Automaker

General Motors (ticker GM) has announced that it will recall every car and truck in the United States ever made…by any automaker.  The company recalled 2.6 million cars in February because of faulty ignition switches.  In all, the company has recalled a New-Coke-ish 29 million cars in North America this year.  Said CEO Mary “No such thing as bad publicity” Barra, who drives a Lexus, “If you drive a car or truck of any make or model, it’s officially been recalled today.  Whatever’s wrong with it is probably GM’s fault.  Get off the road before it’s too late.”  Barra, who began her career at GM as a college intern in 1980 but amazingly claims that she only learned of the ignition switch problem in December 2013, kindly opted not to attend her daily Liars Anonymous meeting in order to speak with Bud Fox News. Continue reading