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Leave it to a guest writer to post the best TC article I can remember in ages. Excellent article, do yourself a favor and give it a read.

by bgentry 15y ago

Estragon 15y ago
I agree, an excellent article. The main thrust, though, seems to be "This is a terrible time to start any business exposed in any way to US retail. We won't have sane economic policy until at least the 2012 elections." My message to entrepreneurs has been, “It’s coming soon to a theater near you.” You know – the “butterfly effect” on a local and tangible basis. Consumers hurting in Detroit or Biloxi will not continue to spend money they don’t have and income they’re not earning. It will impact retail. It will impact brands. These companies advertise. On your tech platforms. These consumers buy iPads, iPhones, Androids. You’re counting on them for up-sells to your app. For buying virtual goods. You need consumers – they’re 70% of the economy. Trouble is – they don’t have jobs. Those that do still have too much debt. Their 401k ain’t what it once was and it just got whacked again. They still have too much personal debt. And the equity in their house isn’t rising. They’re doing what economists call “de-leveraging,” which means spending less, saving more. ************************************************************************ Maybe the stock market drop will bring some clarity to congress. Maybe it will bring some bi-partisan spirit to solving the nations problems. Maybe. But evidence seems to the contrary. Right now people seem to be angling more around November 2012. And that sure sounds a long way away to me.
- nl 15y ago
  I don't think he's saying 2012 will bring sane policy - he's saying that people are hoping the 2012 election will break the gridlock on policy. Maybe sane economic policy will win out, maybe it won't. (In my opinion, either way: the reduction in uncertainty is likely to improve the investment environment)
martythemaniak 15y ago
Indeed, quite the refreshing change from the usual petty punditry.

Leave it to a guest writer to post the best TC article I can remember in ages. Excellent article, do yourself a favor and give it a read.

by bgentry 15y ago

Leave it to a guest writer to post the best TC article I can remember in ages. Excellent article, do yourself a favor and give it a read.

Estragon 15y ago

I agree, an excellent article. The main thrust, though, seems to be "This is a terrible time to start any business exposed in any way to US retail. We won't have sane economic policy until at least the 2012 elections." My message to entrepreneurs has been, “It’s coming soon to a theater near you.” You know – the “butterfly effect” on a local and tangible basis. Consumers hurting in Detroit or Biloxi will not continue to spend money they don’t have and income they’re not earning. It will impact retail. It will impact brands. These companies advertise. On your tech platforms. These consumers buy iPads, iPhones, Androids. You’re counting on them for up-sells to your app. For buying virtual goods. You need consumers – they’re 70% of the economy. Trouble is – they don’t have jobs. Those that do still have too much debt. Their 401k ain’t what it once was and it just got whacked again. They still have too much personal debt. And the equity in their house isn’t rising. They’re doing what economists call “de-leveraging,” which means spending less, saving more. ************************************************************************ Maybe the stock market drop will bring some clarity to congress. Maybe it will bring some bi-partisan spirit to solving the nations problems. Maybe. But evidence seems to the contrary. Right now people seem to be angling more around November 2012. And that sure sounds a long way away to me.

nl 15y ago
I don't think he's saying 2012 will bring sane policy - he's saying that people are hoping the 2012 election will break the gridlock on policy. Maybe sane economic policy will win out, maybe it won't. (In my opinion, either way: the reduction in uncertainty is likely to improve the investment environment)

martythemaniak 15y ago

Indeed, quite the refreshing change from the usual petty punditry.