The companies that are going to hit hardest are going to be in stuff like commercial real estate. That's where people have been flipping loans over at 1% inter

The companies that are going to hit hardest are going to be in stuff like commercial real estate. That's where people have been flipping loans over at 1% interest rates in order to survive, living on the margin. As rates go up their debt service balloons and they'll no longer be able to survive given their vacancy rates. That'll spill over into losses for the financial sector, possibly a CMBS meltdown and a financial crisis, which will spill over into the real economy. All the job losses in housing and real estate and the hit to the financial sector will result in unemployed people who are no longer buying stuff so you'll see a contraction in everything consumption related. That'll lead to much lower ad buys, so that'll hit the ad companies. They'll all layoff staff which acts as a positive feedback loop. Right now mostly we're just seeing companies whose CEOs see this coming down the pike who are laying off some staff early and trying to position better for the recession. It isn't correct to say that e.g. Google's business is reliant on them flipping over loans cheaply, but they are certainly dependent upon other businesses in the economy being able to flip over loans cheaply.