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SUBPRIME ABSTRACTIONS

THE RECENT FINANCIAL LOSSES IN THE U.S. CREDIT MARKET associated with home mortgages have received a great deal of media attention. Among others, Merrill Lynch wrote off $23 billion in assets while Citigroup wrote off $24 billion (Stewart, 2008b). This is, to paraphrase an old aphorism, some serious money.

While there are a variety of bases by which to study the unfortunate credit woes of some American financial institutions and individual investors, principles of general semantics can provide some insight to the process by which this occurred. In particular, what general semantics says about our use of varying degrees of abstract terms and responses to those terms can have a real impact on ...

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