It’s been a few months since my post on PIIGS and BRICs, so I thought I’d update you on the latest financial crisis jargon.
“Grexit” (Greek exit from the Eurozone) from last time has been joined by “Brixit” (British exit from the EU. It also appears less frequently as “Brexit”), “Spexit” (Spanish exit) and the more awkward “Fixit” (for Finland). I’m coining “Netherlexit” now. 🙂
The US “fiscal cliff” has had a lot of press thanks to November’s elections. I don’t want to get too technical but the fiscal cliff refers to a bunch of tax cuts that are going to expire on 1st January 2013 at the same time as spending cuts come into force. Many economists are worried that, unless the US government takes steps to mitigate its effects, the cliff will badly damage the US and other economies.
I think it’s an effective metaphor because it conjures up the image of a car speeding towards a cliff then hurtling off, Thelma and Louise-style. It sounds ominous and, assuming the situation isn’t resolved soon, I expect the US stock market data to resemble a cliff – suddenly plummeting in January. Others are more optimistic, saying that “fiscal hill” or “fiscal slope” would be a better, less alarmist term.
I look forward to seeing what new financial words 2013 will bring. In the meantime, you can always expand your knowledge and sound clever to your friends with the Wikipedia list of Eurozone crisis acronyms.