Financial Crisis

[Prel]

Hello,

What is your opinion and comments referring to current Financial crisis?

For example, how this may affect the market for hosting?

Thanks

[TCH-Bruce]

My opinion is those involved that caused this whole mess should lose their jobs, ordered to pay back all the funds they have pilfered and put in jail.

[Prel]

Really, situations are incredible.

for example: GM the shares fell 31% but the plant them in my city had record sales in my country in September.

[Head Guru]

The economy is in a world of hurt.

 

US Sales of Automobiles hit record lows.

 

Hummer sales were down 54%

Ford sales were down 34%

 

The credit crunch is what is really going to bring the economy to its knees. Many companies rely on short term credit to sustain daily business operations. Small business are struggling to meet weekly payroll's without the short term credit lines that they are so used to obtaining.

 

TotalChoice hosting is a debt free company. We are 100% cash based and have no recurring monthly debt or credit loans to worry about. Since day one we have expanded using cash from our operating profits and NEVER have incurred loans to sustain or build operations. It is something I am very proud of.

[TCH-Thomas]

1. I haven´t been following the crisis that much since most swedish newspapers are using financial words that a non financial person would know what they mean.

 

2. I don´t know if the banks etc that are involved in this crisis have bosses that make huge salaries and gets huge bonuses, but they do here in Sweden (bosses makes several millions a year and the worker makes between 150K and 200K). Get rid of those huge salaries and bonuses as a start and the workers might have more understanding about the situation...then do as Bruce say.

[TCH-Bruce]

Speaking of autos GM stock is at $4.89/share and Ford is at $2.00/share

 

If you are a betting man, load up on those stocks. I don't see either company going bankrupt.

[Prel]

In my country for those who work with hosting and has servers in other countries, the biggest problem is the rising exchange U.S. dollars.

For this reason many are closing their accounts in USA or changing plans for further economic.

On the other hand, companies the hosting here and DC´s based in my country are capturing a slice from public offering plans with values more attractive.

Iinteresting this movement.

And the talk that " oil prices " ! U$ 150 to U$ 85

Edited October 10, 2008 by Prel

[Madmanmcp]

At this point its affecting different people in different ways but I fear its going to greatly impact everyone shortly. What I see right now is a big hit to my IRA's and retirement, being 57, I was looking at early retirement at 62 where Full retirement was to be 66 but I probably could survive the early out penalty. With the market dropping I'm losing money faster than I put it in and its not growing anymore its shrinking...at this rate I will need to work forever!

 

I see the credit problem affecting others but not me, so far. Last month my old '98 ford was acting up and I was tired of putting money into it so we went shopping and my wife got a new Honda Civic and I took over her 2007 Camry, she wanted the 4 cylinder and I liked the big 6. We had several places just beating down our door to loan us money, Honda beat everyone with a 4.99%. I hear the news about a credit problem, yet I had no troubles, go figure.

 

What really has me worried is the job, if one of us gets laid off we will probably be in a big mess and a life changing situation. My job will probably be the one to be hit first being an IT guy. I survived the last IT bust and really don't want to see it happen again. I am older now and companies are trimming the fat, they don't want the older higher paid workers even if we know more and may work harder. They want the younger and lower wage employees. I'm toast.

[OJB]

I was handed my redundancy notice a month ago, which expires end of November....

 

Being a web developer I am sure there are others in a similar situation so I imagine there are going to be more unemployed people than jobs available... which sucks.

 

But aside from that I can't really say I have been that affected yet, I just hope the media is making it out to be worse than it is and we see an upturn sometime soon.

 

The one thing which might help me out is the state of the housing market, when I buy a house with the lady we will be first time buyers... there are LOADS of houses/flats on sale at the moment here in the UK and they are literally throwing money at you to try and take them. Might be a good way onto the property ladder.... I guess time will tell.