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.