It is early Tuesday morning January 22nd. Asian and European markets have tumbled for two days effectively dissing the economic theory of “decoupling”, ie that because US firms have global footprints economic woes in the US will be counterbalanced by strong economic results elsewhere on the planet.
On CNBC the Dow Jones Industrial Average is slated to drop about 500 points….at the bell….coupling today with historic economic history days in 1987, 1992, 1999 and 2001.
Analysts/pundits are predicting the Fed in the US (and possibly Canada) will jump in and drop interest rates….before the bell! The Fed has almost guaranteed a 50 basis point drop later this month so the Street wants the Fed to drop rates 75 basis points….or more.
The “big” question I have for folks logging into this post is this: will a financial freefall on Wall Street today result in your 2008 IT budgets also joining the freefall category? Or, do you have a “fall back” plan that anticipated these kind of situations?