Hamptons 2010: We Mean Business

So it's no secret that the Hamptons house some of the wealthiest individuals on the east coast.  And so it also comes as no surprise that come summer, Wall Street vacates every Friday afternoon to catch the 'copter out east too.  For those of you not fluent in banker lingo, we have your guide to some of the terms you'll hear casually dropped at cocktail parties, and how they translate out in the Hamptons.-

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Sub-Prime Mortgage:

Staying the weekend at a friend's less-than-ideal share all the way in Westhampton. So sub-prime.

Asset-backed Security:

The trust-fund baby dancing next to you at Dune...back that ass[et] up!

Arbitrage:

Who says there's no free lunch in Finance?  The food at that Goldman guy's beachfront clambake totally counts as free.  Not to mention delicious.  We bet if you scored a date with him there would be even more arbitrage opportunities to come.

DCF:

The only "discounted cash flow" you'll be worried about this summer is the lowered balance in your bank account after finding that perfect swimsuit (or, perhaps, swimsuits) at Saks Southampton.

Credit Default Swap:

A mimosa-fueled move to swap out the personal card for the business AmEx after a boozy brunch at Montauk's new Navy Beach.  Hey, you (sort of) discussed investments, right?

Liquid Asset:

Nothing like a stiff martini (or, in desperate circumstances, a liquid lunch.  Arbitrage!) to take the edge off a stuffy charity event.

Law of Diminishing Returns:

A rule for a Hamptons night (or day...) out: things will only get messier with another cocktail.  Trust us.

Troubled Asset Relief Program (TARP):

The call to the Long Island Taxi Service at 3am because there's no way you're getting all the way home from Montauk on your own.

We hope this helps you in all the inevitable run-ins you'll have with finance transfers on summer Fridays...

[Photo via World News Network]