It’s ugly out there. This banking meltdown WILL cause serious problems for all industries, including the advertising agency space. Companies facing a credit crunch will cut down on advertising dollar spent, and that will directly translate to layoffs in our industry.
(10:05:03 AM) YYYYY: how’s your lehman brothers stock doing?
(10:05:38 AM) XXXX: a buddy of mine works there
(10:05:42 AM) XXXX: well
(10:05:47 AM) XXXX: for the rest of today at least
(10:05:57 AM) XXXX: he was told to wear casual clothes and bring a duffel bag
At least they didn’t do what DraftFCB did… told people they were moving desks then canned them..
The problem here is that you can’t have companies not have access to credit.. I know on the personal banking side a colleague of mine could not get a 10,000 dollar loan with an OVER 800 credit score… because the loan officer said “we’re denying everyone” ….
Companies are facing the same problem.. No loans.. no money open to them.. clients slow in paying because they can’t get credit themselves.. then they face meeting payroll or an ad campaign… they’ll choose the payroll.
Lehman Brothers is only the tip of the iceburg in the news as well today, AIG is going directly to the federal reserve asking for 40-50 billion dollars…. directly from the Federal Reserve… so if the Feds print up the money and hand it to AIG you’re looking at increased inflation..
This problem isn’t going away… and it’s going to get worse..