How worried are tech companies?
Worried enough for Microsoft's general counsel to implore the United States House of Representatives to pass the $700 bail-out, Emergency Economic Stabilization Act.
Since Monday, tech heavy Nasdaq took a nose dive as investors bailed on Intel, Google, and Micosoft (among others).
Without credit tight and banks hoarding cash, a lot of companies, not necessarily the ones I mentioned here (they're all cash rich), will cut back on expansion or upgrades. In Google's situation, a companies may cut back on advertising.
Furthermore, Dell and HP had mentioned they were cutting back on research and development for 2009. I am sure it's not a coincidence the announcements came as tech spending will be curtailed in the short-term.
No one know how long this will last. Nor how innovations will be affected by all this.
I keep track of a set of stocks myself and it was ugly. The Senate passed a similar legislation tonight that the House rejected on Monday. It remains to be seen if the House will follow their counterparts in the Senate.
I hope and pray all my fellow mobile warriors will weather this. Even if this bail-out, whether you support it or not, does get passed by Congress, it'll take a while for the credit system to go through the macroeconomic jungle to get to those of us on Main Street.
Note: Steve Balmer seems unable to make up his mind on this issue. Read here for more.
Showing posts with label bail-out. Show all posts
Showing posts with label bail-out. Show all posts
Wednesday, October 1, 2008
Monday, September 29, 2008
Short Musing On Effects of Today's Failed Vote For the Bail-Out Plan
Today's unexpected defeat of the Emergency Economic Stabilization Act by the United States House of Representatives (228-205 against) has triggered a sell-out not seen in history.
What does this mean for the lives of Main Street's mobile warriors? I'm not talking about mobile gadgets specifically but changes in the lives of our friends and families who do rely on tech companies for jobs and our livelihood.
At this point, I do not think anyone honestly knows. With Presidential politics added into the mix of an election year, things become more unpredictable. If it were any other year, this thing would have passed.
Perhaps the fact that members of Congress defied Congressional leadership and the White House is a good sign of things actually returning to the power of the people, politics as usual is not going away just like that.
Today, much of the tech world was jolted by the sell-off on Wall Street. Apple was hit with a double-downgrade, Google trading below 400, and RIMM continues to be hammered. Just about everyone else, Intel, Microsoft to Oracle and Cisco, we saw about a 9% sell-off.
I'll return to posts about the lighter sides of mobile life and gadgets soon and return to bitching about the evils of wireless providers next. But here's hoping things turn around or, the very least, for a soft landing.
What does this mean for the lives of Main Street's mobile warriors? I'm not talking about mobile gadgets specifically but changes in the lives of our friends and families who do rely on tech companies for jobs and our livelihood.
At this point, I do not think anyone honestly knows. With Presidential politics added into the mix of an election year, things become more unpredictable. If it were any other year, this thing would have passed.
Perhaps the fact that members of Congress defied Congressional leadership and the White House is a good sign of things actually returning to the power of the people, politics as usual is not going away just like that.
Today, much of the tech world was jolted by the sell-off on Wall Street. Apple was hit with a double-downgrade, Google trading below 400, and RIMM continues to be hammered. Just about everyone else, Intel, Microsoft to Oracle and Cisco, we saw about a 9% sell-off.
I'll return to posts about the lighter sides of mobile life and gadgets soon and return to bitching about the evils of wireless providers next. But here's hoping things turn around or, the very least, for a soft landing.
Breaking News: DOW now down 500
The United States House of Representatives rejected Bail-Out plan with a 228-205 vote, defying a plea from the White House for rebellious GOP members to support the plan. It's an election year after all with a President winding down his second term.
As a result, the market was down as much as 700 points.
Ouch...not mobile news but important news for everyone. The larger macro situation could impact mobility in the long run.
Feds also pumped $630 billion into the financial system to stem shock. Crude down $11 at this point.
As a result, the market was down as much as 700 points.
Ouch...not mobile news but important news for everyone. The larger macro situation could impact mobility in the long run.
Feds also pumped $630 billion into the financial system to stem shock. Crude down $11 at this point.
- CNN Money reports pay checks could be affected.
- Forbes asks "now what?
- Forbes on subpoenas for the Fannie folks.
- WSJ reports Wall Street asks financial community to act.
- Yahoo News on fallout.
Just as well mobility, I think this is an issue we'll inject into Onxo's posts as it affects pretty much everyone (I doubt billionaires follow what we say her). We'll return with posts, analysis, and links that directly affect Main Street mobile warriors.
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