Quote:
Originally Posted by Emil
Stimulus packages work great, that's why the third one is on its way!
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Qft.
Let's think about why someone running a business would hold cash.
Businesses including ours normally invest money paying for people, equipment, etc. because they expect to make a profit. Think of your own business. You will buy content, software, ads, or hire people when you think you will earn more by doing so. Of course if a bunch of businesses buy content, that gives a photographer a job. When you buy software that gives a programmer a job. You do this spending in order to make money for yourself. So in normal times your own self-interest leads you to invest your cash and help create jobs.
When would you hold on to your cash instead of buying content, ads, and software?
a) you think it will not make money because the economy will not improve
b) you don't want to invest more in adult because you fear another CDA or COPPA type regulation (there is a Clinton in Washington)
c) you think perhaps government will turn against business in general, making profit less likely
d) you're concerned that you don't know what's going to happen next, so you may need the cash at any minute
Which of the four reasons do you think is happening now?
Remember in normal times you and other businesses spend money to make money - self interest creates jobs. So why would you hold cash right now rather than say buying Clonebox, or more content, or traffic?