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Are You Preparing for a Recession?

Here in panic nation, with the sub-prime mortgage fiasco and the resulting credit crunch leaving blocks of houses empty, and the stock market tanking like the Cowboys in a playoff game, all the talk is starting to boil down to one word: recession.

The signs of an economic slowdown are everywhere, and presidential candidates are starting to address the issue -- and when politicians wake up and realize that something's going on, that's when you know that whatever it is they're talking about is at an advanced stage and is very much upon us.

We don't often venture outside the realm of Microsoft and industry news here at RCPU -- and we're hardly economists, although we sometimes read The Economist -- but the "r" word, should it come to pass, would have implications for everybody reading (and writing) this newsletter. The question is whether you're prepared for a recession, or at least for some tough times ahead.

Now, as Microsoft partners, maybe you're not in panic mode, and maybe you shouldn't be. After all, one of RCPU's principal laws of the universe is that no matter what happens, Microsoft just keeps making money. But the credit crunch might already have your business in a bit of a bind, and any sort of economic downturn that eventually affects IT spending could make the sledding all that much tougher.

So, as we sometimes like to do here, we're turning the floor over to you on this one. Tell us: Are you preparing for a recession, or at least for tough times ahead? What are you doing to prepare? How much would a recession affect your business?

As always, direct your answers to [email protected]. If we get any in time, we'll run some tomorrow. Otherwise, look for responses in this space next week.

Oh, and totally off-topic for this entry but very much on-topic for RCPU, the Microsoft executive exodus continued this week with the departure of Rob Short, an important guy from the Core Operating System Division . And one departing Microsoft exec might literally buy the farm.

Posted by Lee Pender on January 16, 2008 at 11:54 AM


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