Bad Wall Street = Bad Tech Market?

September 26, 2008 by
Filed under: DAILY Dose of PC News 

It’s been one rough week. A very rough week. Not only has the nation’s largest bank folded (as announced last night), but Wall Street has literally blown apart with the downfalls of Leiman, Merrell, AIG and others. So what does this do for the IT/Tech market and ultimately what will this do to the PC user?

According to the Silicon Alley Advisor, the tech market has lost potentially around $11 billion dollars thanks to Wall Street’s blow up this week. However, that’s not the concern. Accoring to the article, “the biggest risk to the tech market comes, not from the Wall Street collapse, but from a collateral U.S. recession. Forrester expects a mild recession in the U.S. and Europe lasting through Q3 and Q4 of 2008, and Q1 of 2009. While tech spending grew 8% in the U.S. in 2007, we are forecasting tech purchases to be up 5% in 2008, and up 6% in 2009.”

Some analysts say there may be a silver lining in the downfall of some of America’s largest financial firms. When another company buys a fallen comrade, IT must be there to integrate these company’s large IT infrastructures, which will then mean IT spending could increase.

There’s no doubt these last few weeks have been scary for the American public as well as the average IT user who doesn’t know what will happen. But as all experts say, time will tell.

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