What If It’s Worse Than We Think?
When the financial crisis reached full bloom last fall, it took many technology companies some time before they were able to appreciate the impact it would have on them. This year, we’re seeing the fallout in the form big losses or shrunken profits, layoffs and other signs of retrenchment.
Alongside the pain, however, there’s a sense of optimism - that the worst is over and the tech industry just has to muddle through until the economy recovers. But the worst may not, in fact, be over; Financial Meltdown 2.0 might be lurking around the corner to deliver a second, possibly harsher blow.
The tech world is at a crossroads. But the choice of which road we take isn’t ours. It belongs to the financial markets and the regulators who are still struggling to right them. On Monday, Treasury Secretary Tim Geithner is expected to unveil another plan to address the big banks’ bad assets and stop more homeowners from falling into foreclosure. Details of the plan may offer a signpost as to where we’re headed.
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