Item — HN Reader

In a downturn:

1. advertising dries up completely. 2. people tend to curb risky financial moves, such as early stage capital 3. businesses will cut back on almost all new development

The big question isn't, "Will it get bad?" but "Just how bad will it get?"

1 comments

Look at this graph of television ad spending over the last 30 years - http://www.nextcenturymedia.com/images/Image3.gif - (the associated article - http://www.nextcenturymedia.com/library/dougross-article-b.h... - is less pertinent.) While there is a noticeable lack of growth during recessions, it's anything but dried up completely.

Jeff Bussgang does a nice job of explaining why VC funds are more attractive to investors during a downturn - http://bostonvcblog.typepad.com/vc/2008/01/whos-afraid-of.ht...

The sky is not falling.