We have all heard of the ripple effect. Will the ripples in our economy continue to pose problems as some of the biggest names on Wall St., head fro the dumpster. So how will this affect the technology field? First there is going to be the issue of loans. As banks such as Bank of America suck up what the crooks at Country Wide and now Merrill Lynch have left behind, there doesn’t leave much doubt that future loans may be hard to come by. The only thing that is currently keeping technology up is that demand has yet to wane.
According to this article, things could change rapidly. In the article it states:
On the technology financing front all of the top IPOs will all run through Goldman Sachs and Morgan Stanley. If there is ever another big tech IPO your underwriter choices are severely limited since there are only two big investment banks left–Goldman Sachs and Morgan Stanley. If there was little incentive to go public before there’s really nothing prodding you to do it now. Venture capitalists can effectively shut the door on IPOs as an exit strategy.
So what do you think? Will the down turn in the economy eventually catch up with the technology field?