If you’ve watched the news in the past day, you probably already know that U.S.-based economic worries triggered a stock market meltdown all over the world. There are fears of a U.S. recession in 2008 – or the closest thing to it that it doesn’t matter.
While this isn’t something to be proud of, I’ve been saying for two years that a recession will come. However, I expected it to happen between 2009-2011, not this early. In fact, this Monday meltdown was triggered by President Bush’s announcement of an aid package to prevent a recession – or so I understand. (What’s more, Jan 21st is supposed to be the worst day of the year for seasonal depression.)
Unfortunately, that sort of talk from a head of state often triggers worse events rather than helping. The last thing a recession needs is for people to stop spending, but that’s what usually happens.
Now, should you as a blogger worry about this? If advertisers start to worry, there might be less ad inventory to go around – and it very likely will go to the top blogs in a given niche.
The easy answer to this question is “yes”, but let’s hope that we won’t be affected. Other indications are that more money will be spent for online advertising in 2008 than in 2007. So that might counteract any decreases due to recession. In fact, since it’s generally cheaper to advertise online, a recession could cause a shift in advertising dollars to the online domain.
Still, if you’re making your living solely as a blogger, I’d say be cautious, especially if your blogging income has been unstable in the past 2-3 months. If you blog part time but have a full-time job, keep an eye on your career. Jobs are already being lost, some possibly indirectly due to the Writers Guild Association’s ongoing strike. (When a multi-billion dollar industry comes mostly to a standstill, there’s a domino effect on related industries.)
Let’s cross our fingers that this Blue Monday market meltdown is a temporary glitch and that things will improve soon. Or at least after the U.S. elections.
The site is wonderful.You can give more information about the site.
Let’s hope that the good trend we saw in Decemeber continues in 2008
December was my best month ever and January looks good too. No worries yet
*Looks at my dollar bill…*
*Thinks hard about that planned trip to Europe…*
The whole world economy is suffering from America’s recessionary threat. The U.S. dollar is very weak, the country is becoming weak, and many houses around Virginia are being sold off.
However, I believe the economy will bounce back with time.
How about getting Bush out of office first though? Has he not done enough damage?
@James: No kidding. Well while I’m glad you’re blogging, I’m also disappointed that the other James Chartrand is not. (He lives in Ontario.)
@ Raj – It’s a *really* common name up here in Quebec, though in French James is Jean. Quebec is a big province, too, so another writer? Likely. I never did have a book store, though I’ve always wanted to. No apologies necessary!
@James: What are the chances that there is another James Chartrand who is a writer and who is originally from Quebec? I’m guessing then that you never had a book store and are in fact a different James Chartrand. Apologies.
@ Raj – Hm, could be another James (there’s a few of us out there). I tend to hoard books like a squirrel preparing for winter 😉
Good points all.
@James: Let’s hope that there’s enough opportunity for all, both in the U.S. and outside. (Congrats on your posting at Copyblogger. BTW, do you not remember me? You gave my mother a whole bunch of books.)
@Tableread: Actually, I used say “the market’s great” b/c I worked in related industries for a while. But it becomes a rollercoaster of emotion. My bad. I tend to equate stock market and economy. They are of course not the same thing, but do affect each other.
@Ryan: Good point. On the plus side, more money has supposedly been earmarked for online ad campaigns. However, AdSense incomes might suffer but CPM ad networks might help you increase revenue – or at least defray the loss in other areas.
I’m actually more worried about the economy than the stock market. It’s the economy that drives advertising. And it’s advertising that makes me 90% of my money at the moment.
It’s always funny (IMO) when people start worrying about the stock market. The market is only good or great in retrospect and never in the here in now. We never say “Wow, the market is great and my income is great!” it’s always “Uh-Oh.”
If you don’t like the market – wait 15 minutes it will change.
I can usually be found in the kitchen, everything else can be found here: http://tablebread.blogspot.com
I’ve been watching the situation from Canada (not only because of the effect the impending recession might have on the currently wonky US-CAD exchange rate), and I think this could be a good thing for online businesses.
As people begin to fear for their jobs or their personal financial state, they may turn towards making that leap into owning their own business. They may feel the need to take charge of the situation to ensure their survival.
Where will they turn? Online. They will look outside the US towards international income opportunities the Internet provides. They will build websites and blogs or create products or information to sell to people.
Freelancers will be there, waiting and happy to help out.
Action, reaction. Recession, rebellion. Through events shoved on us, we gain the motivation to do something about it and not just sit back waiting for the tough times to pass.