Sell-Out Tuesday

German Legal Term of the Day

"Quotenkonsolidierungsverfahren" = pro rata consolidation procedure.

This is a very specific phrase/word having to do with consolidation of interests in banking. (Here's an old report discussing different views on the subject . . . if you're really that interested, the mention of pro-rata is at the very end.) In some ways, like with some of the other words I've shared, it's no different than shoving an entire English phrase into a single word. But in other ways, it sums up the German approach in one ten-syllable shot.

Despite the fact that German attorneys have all these long words, they use American nicknames for corporate take-overs. And they like them because they make it sound cool; poison pill, saturday night special, white night, black night, green mail, squeeze-out, etc. They make long words, we try and sound like gangsters.

The Hearings That Weren't

If you haven't heard any of This American Life's coverage of the financial crisis, check it out. Teaming up with the folks from Planet Money, TAL does a great job. Their most recent broadcast deals with the government regulators and the credit rating companies. Both function - or are supposed to function - as gatekeepers. During the last decade or so, they did anything but.

If the latest episode doesn't clarify why some level of legal literacy is important in a democracy, I don't know what will. For years, under Democratic and Republican administrations and Congresses, American kept saying they wanted less regulation. Based on their anger these days, it doesn't seem like they knew what they were asking for. But they got it, in spades.