Member Avatar for Brian.oco

Only a few weeks ago, things were rosy on Wall Street . . . well, as rosy as things can get in the money maelstrom of Manhattan.

The Dow Jones Industrial Index (DJIA) -- the chief benchmark for the U.S. stock market -- had surpassed the magic 14,000 mark. Most companies, including technology companies, were reporting solid quarterly gains.

According to the Business Week Global Information Technology Index, IT stocks were up over 6.9% in 2007. Computer & Peripherals (14.4%) and Seminconductors (9.5%) were doing even better.

So why are tech company CFO's acting crankier than Lindsey Lohan over last call? The answer can be found in the credit markets, where poor lending decisions in the sub-prime mortgage market have spilled over into the broader lending markets, with the ensuing credit crisis taking the stock market down with it.

With banks and other lenders licking their wounds over bad loans and loads of lost income, their reaction is a natural one: turn off the money spigots. Not just to the average home-mortgage customer, but to everybody. I'll have more on the mechanics of that process in my next blog, but the takeaway for technology companies is that it's become much more difficult to raise the capital they need to grow their businesses. You know, for operating expenses like new hires, new equipment, new advertising and marketing campaigns. With most lenders going from a flashing yellow light to a flashing red light in recent weeks, credit has become tighter and harder for everyone to get.

The national media has gone to town on this issue, printing every rumor and slapping big headlines on their front pages saying that the credit crisis could bring the economy down. Stock market guru Jim Cramer had a meltdown on his popular CNBC show the other night, and financial pundits everywhere are touting the stock market's ills with all the intensity of a fight over doggy bones at Michael Vick's house.

But let's take a chill pill. Nobody's job is in peril, and technology companies aren't looking at layoffs as a credible belt-tightening option. Consumer confidence is up, business remains good, and, if anything, tech companies may slow new hires down or cut back on a new ad campaign, but that's about it. They'll ride this out with the rest of us and soon, when credit loosens up again (probably triggered by a Federal Reserve rate cut), money will be plentiful again and all will be well.

After all, birds gotta fly and banks gotta lend. That's what they do. Sure, money is tougher to come by now but once the stock market works its credit and lending woes out of its system, which is what we are seeing now, the credit picture will brighten.

It's just a matter of when . . .

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  • Latest Post Latest Post by jwenting

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Both and surface useful, complementary points: broad market moves can change employer behavior, and certain niches carry concentrated exposure. The material below focuses on practical, verifiable ways to assess near-term job risk and actions that reduce personal and business vulnerability without re-stating the original thread's market specifics.

Signals that a role or employer is under stress:

  • public or internal hiring freezes, cancelled requisitions, or sudden pause on contractor renewals
  • projects with measurable budgets being deferred or marked non-essential
  • slower vendor or customer payments, or requests to extend payment terms
  • new emphasis from leadership on cash, short-term ROI, or “do more with less” metrics
  • reduced marketing/advertising spend or paused capital purchases

Recommended actions for individuals and contractors:

  • maintain a short-term cash buffer and trim non-essential monthly burn
  • document recent, measurable achievements (revenue, cost savings, throughput) for internal visibility or job searches
  • update professional profiles and contacts; prioritize cross-training into adjacent, higher-demand skills
  • for contractors, keep current contract records and invoice history; accelerate pipeline generation
  • request clarification from managers on high-impact priorities so work aligns with what leadership will fund

Notes for market-data or niche financial-technology providers (expanding on ): stress-test revenue concentration, explore diversified pricing (subscription, usage tiers), and quantify which product features are “must-have” versus “nice-to-have.” Legal and contract documentation should be current so service obligations and termination clauses are clear.

Short-term preparedness and clear, measurable communication of value generally preserve options during market dislocations.

Member Avatar for jwenting

Sure it impacts my job. I work in the market data business, and we're the ones supplying the data used to make trades to a lot of brokers and banks.

There is a chance (given historical record) that governments will step in and require that part or all of that data be regulated or even supplied free of charge in the future.
That would affect us massively.

But indeed, the average person won't be affected unless it's he works for one of the mortgage firms or hedgefunds that are now in trouble because of bad deals they funded with loans.

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