The American Dialect Society has chosen subprime as the word of the year for 2007, reflecting a “preoccupation of the press and public for the past year with the deepening mortgage crisis.” The society defines subprime as “an adjective used to describe a risky or less than ideal loan, mortgage or investment.”

The preoccupation with the subprime loan fallout also prompted the society to create a new category for its 18th annual words-of-the-year vote: real estate words. Other real estate words nominated for voting were “exploding ARM,” “liar’s loan” and “NINJA” (No Income, No Job or Assets).

Words from other categories that received votes for word of the year included “green,” “Facebook,” “waterboarding,” and “Googlegänger,” a person with your name who shows up when you Google yourself.

We’re predicting that the 2008 word of the year will begin with an “r.” If the dip in foreclosure activity in November is indicative of the trend in 2008, then it could be “recovery.” But if another wave of defaults and bank repossessions hits, as many are expecting, the word could be “REO” or something even more ominous.