Thursday, October 16, 2008

READ: R.I.P. Good Times

It's one thing to see the data in the New York Times.  It's another to get an email which originated at one of the largest venture capital funds in the world with the following message:
"We are in a serious economic downturn and this is just the beginning. Immediate, decisive and swift action is required, along with frugal, day-to-day management of expenses and our business is required."
The email I am talking about details a mandatory meeting with a hudred CEOs where the following were some of the messages delivered while the conference room screen was apparently showing the image above:
We are in drastic times. Drastic times mean drastic measures must be taken to survive. Forget about getting ahead, we’re talking survive. Get this point into your heads. 
We are in the beginning of a long cycle, what we call a “Secular Bear Market.”

This is a global issue and not a ‘normal’ time.

There is significant risk to growth and your personal wealth.

A “V” shaped recovery is unlikely [√]

Cuts in spending will accelerate in Q4/Q1. Look at eBay—this is just the beginning.

This is a different animal and will take years to recover.
In other words, CEOs are being told to assume the business equivalent of the fetal position.  

This is a beast that feeds the beast.

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