Economic Woes Got Tech Companies Worried

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.