Wednesday, October 1, 2008

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.

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