The Worldwide Economy

[Matt R.]

We're seeing a change of an era with the world today. The US and European economies have taken a hammering with all the banks failing but I honestly though the house would vote to back up Wall Street.

We're going to see lots of businesses go under. Those that rely on credit to operate. Businesses can still be liquid and profitable yet rely on short term overdraft to trade or longer term loans for expansion and growth. In previous businesses I have used credit for growth.

I think with yesterday's decision, we're going to see 90% of credit dry up. Particularly unsecured credit like overdrafts. This is going to hurt a lot of businesses that have been doing well but rely on credit to operate. They'll be forced to cut jobs or go out of business. People will struggle to find new jobs and will be claming income support from an already overspent government....

Any thoughts on this? I am an avid follower of economics and spent most of yesterday glued to the TV.

[Matt R.]

Oh and just as some reassurance. WHB has not and does not require credit. We have never even used overdraft. We are solid financially and because we have two locations (US and Dubai) we are very stable.

I know some hosting companies, some of that we are friendly with, some that we aren't, are heavily in credit and I think times will be far more testing for those.

[Saf M]

Apart from the Middle East whose economies are currently booming because of all the oil money.. I wonder how it would shape up for other nations such as Japan, China, Russia etc.

Especially China and India whose economies are dependent on the ability of American consumers to buy products and services. If they stop buying or have no money, things would not look good for these two emerging giants too because their local consumers are not in that position to provide the necessary support.

[Saf M]

I could be wrong about the Middle East because if oil demand in America goes down, it would impact on their exports as well.

[xaurav]

Apart from the Middle East whose economies are currently booming because of all the oil money.. I wonder how it would shape up for other nations such as Japan, China, Russia etc.

Especially China and India whose economies are dependent on the ability of American consumers to buy products and services. If they stop buying or have no money, things would not look good for these two emerging giants too because their local consumers are not in that position to provide the necessary support.

I am from india,and Its a Dark fact about economy, that it depends on your country as well.
Most of IT companies are serving American Clients .
We have BPO's where no of people are working.

Its a serious disaster.

Well i think things will be in control very soon.

[Tony]

I can't see us standing in bread lines. I mean, we did fix the things that led to that during the Depression? I hope.