Euphemisms meant to veil the pain

Editor's note: This article is reposted with permission by The Real Deal. Click here to view the original article.

By SARABETH SANDERS

These days, firms don't downsize, they "rightsize." Companies no longer make budget cuts, they "reduce to competitive levels."

The current downturn has ushered in a new wave of vocabulary for real estate firms that are trying to spin bad news.

Lenders may be asking for 25 percent or more of the purchase price on a new apartment up front, but rather than referring to it as a downpayment, many have recently started calling it an "investment." Meanwhile, that deed in lieu of foreclosure was really just a "loss mitigation technique." And no, that wasn't a price cut. It was a "price correction."

As the Web site Cityfile recently observed, restaurants across New York have been "closing for renovations," until, after a few weeks or months, they're finally ready to reveal what insiders knew all along: Reopening was never in the plans.

To some, euphemisms like these are a pointless exercise. "It doesn't matter what moniker you give these things," said David Schechtman, senior director of Eastern Consolidated's turnaround and distressed group. "We are in a down market, whether you call it what it is or candy-coat it."

Still, that hasn't stopped firms from trying. One tactic is turning simple but unforgiving phrases into jargon in order to lessen their impact. Case in point: "rationalizing the workforce." ...CONTINUED

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