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October 06, 2008
How bad is it?
A quote from a shopper in suburban Chicago in the Times today summarizes what many people are experiencing from the increasingly louder drumbeat of bad economic news:
“All the talk about how bad it is out there has started getting in my head."
And the financial crisis hadn't even affected her family. That's the trickle-down effect of perception.
Economists have been warning that the trickle-down effect of the credit crisis on Wall Street will spread to any business that relies on credit as a capital resource.
Has it? Is the credit crisis affecting your company and how it spends money on marketing, sales, or operations?
Take the poll and/or sound off in the comments.
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In the last month, we have had record sales in our restaurant.
The media has chronic anxiety disorder. They fixate on problems and self-perpetuate them, thus creating more of a swirl... which increases anxiety.
I'm glad you've written about this. My short response has turned into a rant... I realized I'm pretty passionate about this topic.
I was going to post about this myself... I'm glad you have brought it up.
I'm an American living temporarily in Amsterdam. I've been here just over two years. European news coverage delivers the important headlines from the US as part of their global coverage. I'm concerned, not frantic.
I visit the US once-a-month to meet with clients. I had to turn off the TV during my visit a few weeks ago.
You can't help becoming upset - when on every channel - the media is running around 24/7 yelling... "THE SKY IS FALLING! THE SKY IS FALLING!"
Take a look at the top two headlines on CNN.com this morning...
"Jobless father kills family, himself" - A man distraught because he could not find work shot and killed his mother-in-law, his wife and three sons and then killed himself inside a home in an upscale Southern California neighborhood...
and
"Economy spurs fears of 'being on the street'"
Jeez... if a person in an upscale Southern California neighborhood killed everyone... maybe I need to worry myself. I'm not as well off as an upscale person...
Before hurricane Ike hit land - my family was driving up the east coast of the US from Florida and saw gas prices over 5-bucks, purchase limits of only 10-gallons max, and gas stations shut down... This was all in response to the sensational news coverage predicting a potential that there maybe, possibly, could be, fuel issues linked to the storm knocking-out oil capabilities in the gulf.
There wasn't a problem, there was the *fear* of a problem. Media created a swirl of worry.
I want to grow my business, but read the McDonald's franchisees were being denied their lines of credit from Bank of America to expand their McDonald's locations. If a McDonald's franchise can't get money, how the heck am I - mom and pop - going to be able to borrow money?
On the agency side, we're seeing clients accelerate the shift from traditional to digital media, and for a pretty simple reason: it's all measurable. In times like these, marketers want to know what they're getting for every dollar spent.
www.anonymousadguy.com
On the agency side, we're seeing clients accelerate the shift from traditional to digital media, and for a pretty simple reason: it's all measurable. In times like these, marketers want to know what they're getting for every dollar spent.
www.anonymousadguy.com
You're rigt. Even the anxiety of the economic crises can cause it to deepen. The trickle down effect certainly isn't a desirable one.
I was laid off from my job a few months back, but even I think that a lot of this "sky is falling" stuff is too much.
Much of our economy is based on how we feel about the economy. The greater the fear, the worse things will sink. While families like mine certainly need to cut back expenses b/c the economy has directly and dramatically affected our bank account, we'll be in even worse trouble if EVERYONE reigns in spending.
Avoid the crowd since it does not know you or care about you.
Dow Jones is meaningless to the average person since no one is really average.
Averages mean nothing to you and me---your head can be in the oven and your feet can be in the freezer and on average you are just fine.
Don't listen to the crowd---more often than not it is wrong.
John Bradley Jackson
Author of First, Best, or Different
As FDR Said many years ago
"“Only Thing We Have to Fear Is Fear Itself”"
Enough said...
The last three weeks have been the busiest in four years, both for hard orders as well as inquiries, representing both Internet sales as well as my local brick and mortar reseller activity.
Your mileage may vary.
I have to agree with Paul's post. The media makes all of this so much worse (although, admittedly the situation is pretty bad in and of itself).
My company PluggedIN Co. (http://www.pluggedinco.com) has an interesting perspective on how this has been unfolding from a consumer perspective, by virtue of running ongoing research communities with consumers. What started initially as small rumblings of concern is now full fledged fear, and I have to say that part of it seems to be exacerbated by the media.
For me personally, it's been more of a mixed bag. I'm concerned how our clients will react and if they will cut spending, but not to the extent that it is changing our strategy. It also hasn't impacted our spending.
