Reply to Is there going to be panic selling?

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[quote=Anonymous][quote=Anonymous]One thing people underestimate is the effects on private sector companies outside DC. If you're a federal employee, think of all the software programs you use at work -- everything from virus scan programs (usually multiple of them because the threat environment is very complicated), to document management, to benefits. You probably don't notice the companies behind all of them, but most are publicly traded. Now, imagine Musk cuts back on all those software programs, or the agencies find a way to do it themselves due to less in appropriations.

Suddenly, the 10% YOY revenue increases those companies were reporting to their investors stop. Revenues are flat or dropping. That means their stock prices drop because built into those stock prices were an expectation that revenues would continue to go up. With dropping or stagnant revenues, and fewer government customers, those companies now need to do layoffs. And before you now it, we'll be in a recession with no easy way out.

It's going to get ugly, folks.[/quote]

+1 [/quote]

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