Domains, Economy, US dollar

[hugegrowth]

Anyone getting worried about the impact of the decline in US$ and economy, and it's effect on their domaining business?

This could be a real test for domaining since things picked up after the dotcom crash of 2000-2002.

I always thought domains could withstand a downturn in the economy because internet use shouldn't be affected too much, and advertising online is growing.

Will this be enough to continue a good PPC market?

Will domain sales slow down or prices fall?

Is it a good time for people with rising currencies to buy aftermarket domains at US $?

At least many consumer businesses have been having good earnings, so they are still able to spend on advertising.

 

[Deleted member 2020]

As far as the value of the dollar is concerned, just charge more dollars when selling, or price in GBP or Euros.

Just a suggestion.

The return on investment on domains is generally so large, that comparatively modest fluctuations in exchange rates don't bother me.

If the US economy is collapsing, that could of course adversely affect sales to US companies/people.

 

[Poker]

The Fed rate cut will boost the US economy short term and if more cuts follow that will help to maintain it as well, but we could be in for more hurt due to the inflation it could cause and the futher decline of the US dollar (due to rate cuts).

The credit bubble has forced the Fed's hands (as far as they are concerned anyway) and they appear willing to bail out lenders, over leveraged hedge funds and other large speculators. Stock market bubbles are formed with hot air and that's exactly what we have here, but an aggressive Fed can slow it down dramtically. The best position to take is simply one of reaction.

 

[VioxxLawyers]

The Fed rate cut will boost the US economy short term and if more cuts follow that will help to maintain it as well, but we could be in for more hurt due to the inflation it could cause and the futher decline of the US dollar (due to rate cuts).

The credit bubble has forced the Fed's hands (as far as they are concerned anyway) and they appear willing to bail out lenders, over leveraged hedge funds and other large speculators. Stock market bubbles are formed with hot air and that's exactly what we have here, but an aggressive Fed can slow it down dramtically. The best position to take is simply one of reaction.

It has nothing to do with speculation

- negative savings rate
- huge account deficit (trade, public)
- $50 trillion debt, as large as the country wealth. 50-50= zero.

Please watch Peterson interview.

http://www.youtube.com/watch?v=lowq9vm412U&

More links:
http://www.usatoday.com/educate/college/polisci/articles/20070603.htm
http://mwhodges.home.att.net/nat-debt/debt-nat.htm
http://www.opendemocracy.net/globalization-americanpower/article_1463.jsp

Purchasing power in the US has been falling for 80% of Americans since 1975.

 

[hugegrowth]

Consider the rest of the world is wealthier now than at any other time in the 1900's.

The flipside will be as the dollar declines, tourism to the States will increase. People want to see New York, Disney, Hawaii, Florida, Arizona, Vegas, and it's cheaper now than ever.

Buying US products in getting cheaper - will help exports.

Real Estate, stocks, and other assets in US dollars will become attractive to foreigners.

Parts of the US economy could do well will a dollar decline.

I think the US gov't seriously has to start paying down their debt. The Canadian gov't was in bad shape but through the 90's and 00's have been paying down the debt and running surplus budgets. US has to start doing the same if it's not too late.

 

[Poker]

It has nothing to do with speculation.

I can only assume you don't watch financial markets

 

[socalboy]

As those of you who've read some of my other posts already know, I've been trying to figure this one out too. Is this a temporary situation, or is there something much more fundamental and longterm occurring?

Regarding the domains, I'm a bit concerned, for the following reasons. .com/.net/.org is primarily a US phenomenon. Sites in other countries tend to be on their own ccTLDs. True, foreign companies wanting to market to Americans look for com/net/org, but if they have the TM, they can just force the turnover.

If the US economy is in real trouble, it could signal problems in future sale prices for these TLDs. The last report I saw concerning ad revs stated that the internet was expected to be the largest venue for ad spending by 2011. But if you're getting paid in USD, still may not be a good deal, as I see the dollar continuing to fall.

I think there are a lot of improvements in computer processing speed, fiber to the home, etc., which will spawn still-unimagined applications. A plus. But I also think it's only a matter of time before governments start to tax internet sites. I've heard rumblings out of Europe to this effect. And the US government sure needs money right now. They will need a way to appraise them, but we may be getting there.

I don't think Fed rate cuts are going to solve the economic problems. When the 2000 stock market bubble burst, to avoid what should have been a serious recession, the Greenspan Fed allowed banks to issue risky residential loans that had been banned in the US since the Great Depression, and for good reason. Thus he substitued a housing bubble for a stock market bubble.

As Japan found in the 90s, you can lower rates to near 0, but eventually it becomes like pushing on a string. And Japanese stock and RE prices fell 90% during that period. Talk about a bear market. And it was also a period when Japan saw a large increase in retirees, just like the US is facing.

To me this looks a lot like 1927. I think it was that year when the Florida RE bubble burst. But it took another couple of years before the rest of the country went down the tubes.

-SoCalBoy

 

[VioxxLawyers]

I can only assume you don't watch financial markets

You are going to lose your shirt, but you know what it's like anyway (poker game)

Maybe this Google video will convince you:

http://video.google.com/videoplay?d...306&start=0&num=10&so=0&type=search&plindex=0

Take care

 

[clemzonguy]

I don't know about anyone else, but I don't really watch financial news unless it pertains to maybe investments which really need to be made in the long term anyways. If you are doing business on the internet there are always new ways of making money if you focus your efforts. Each year revenue should be increasing. Otherwise ask yourself if you are doing something correctly. Diversification is also key.

Any up turn should be good for domains. Any down turn should be good also because it will allow you to buy up things on the cheap. Who cares what Greenspan thinks. Interest rates only matter when you are borrowing. The borrower is always servant to the lender. And in the end It's really all about unjust weights and measures.

 

[socalboy]

Diversification is also key.

Best thing that has been said so far.

Interest rates only matter when you are borrowing. The borrower is always servant to the lender.

The problem is that too many Americans are in debt. Perhaps you're one of the smarter one's who's not.

 

[JMJ]

The fed forced their own hands. If they had not played into the whole "boost the economy" idea after 9/11. Droped rates to an all time low and kept them there for years while the admin was on a war spending spree like no other we wouldn't be where we are. The lenders got cheap money so they bought, the borrowers got cheap money so they bought. They aren't the ones to blame. Remember it wasn't too long ago alot of people around here were preaching about what a great economy we had. Most Americans had the same belief.

If the dollar goes bust it's GWB, Cheney and cohorts fault. Anyone who hasn't sold all their dollars will be broke which will be almost every US citizen. If every US citizen quits shopping then the companies quit making money and eventually they go broke. Complete collapse of the economy could very easily be the result. We've already been bailed out of a similar situation once in the past. Vietnam, bankrupt, Nixon, and abolishing the gold standard has led to what you are seeing happening today. Do you think the world loves us Americans so much they will bail us out again so we can continue to invade countries and buy bling?

 

[socalboy]

Agreed. Suddenly we have all these problems. Seems like only yesterday we had a booming economy based on technological innovation, a budget surplus, and the future looked bright. Did I blink or something?

I saw an article recently by an American professor stating that Bush is the only national leader in recorded history to start a war at the same time as reducing taxes. Wars are synonymous with tax increases in order to pay for them. (Not that we should be at war at all, but that's another subject.)

If the Fed has no discipline, it will be the dollar that eventually disciplines the Fed. But unfortunately a lot of innocent Americans will be hurt by then.

 

[JMJ]

Should be no reason to wonder why Haliburton opened up it's new headquarters in Dubai this year.