So many terms in finance are deceptive that I am not surprised to hear general distrust of the industry. Sometimes I have to reread a paragraph several times to understand the negatives I am actually being presented. I wanted to establish a post to with examples.
The first and most deceptive one is "strengthening reserves." When one reads this phrase in an annual report, it sounds like something good is happening, while it should read "poorly estimated losses and now taking a bath in them." In reading for the reverse, the reports never state "weakening reserves," rather they say "releasing reserves." The proper way, then, to be truthful and clear might be to say "taking reserves," rather than "strengthening reserves."
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