Its no secret that the U.S. economy is having some issues, and many believe the worst will come. The domain market seems to be thriving from 05-07 but I can't help to wonder if it is slowing.
What do you think?
What do you think?
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Will the U.S. economy bring down the domain market?
- Thread starter hanny
- Start date
The views expressed on this page by users and staff are their own, not those of NamePros.
I strongly believe the U.S. is facing a hard landing, and I may call it a recession already. So certainly U.S. is entering a period of slow activity, and economy on the denfensive side. Typically, domaining market may continue to suffer from this however there are no stats to show the strength of correlation between economy slowdown and the domain name market.
Porte said:
I certainly agree with you there, http://recession.org is a project of mine.
I am just wondering how significantly this will effect the global domain market, has anyone noticed a trend of domains not quite fetching what they seem they should?
I guess I am concerned of investing further in this market due to fear of a bubble of sorts.
At the same time I can't help to wonder if as hard times fall upon many, will recreation outside of the internet decrease (due to cost) and the internet market will actually thrive. Lower prices causing more people to stay home and seek entertainment or products from the internet instead of spending $40 in gas to get to the mall.
- Impact
- 81
Well, I have been very worried about the silly, silly overprinting of U.S. currency to the point it is going to really crash in value more than it already has.
But, the flip side to this is if you own a foreign company and you want to sell/brand your product to U.S. citizens, would not a really low dollar be a awesome opportunity to sell/brand the hell out of your product?
I can see foreign companies advertising in the U.S. hitting overdrive as they see the chance to take market share away from U.S. companies since it will now cost U.S. companies more to advertise.
So, low dollar = U.S. companies advertise less / Foreign companies advertise more, taking up the slack and keeping domainers incomes afloat?
Maybe?
Or maybe both U.S. and foreign companies start to advertise more in a weak economy? U.S. dompanies doing it to boost quarterly numbers, foreign b/c the dollar is cheap to buy.
.
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But, the flip side to this is if you own a foreign company and you want to sell/brand your product to U.S. citizens, would not a really low dollar be a awesome opportunity to sell/brand the hell out of your product?
I can see foreign companies advertising in the U.S. hitting overdrive as they see the chance to take market share away from U.S. companies since it will now cost U.S. companies more to advertise.
So, low dollar = U.S. companies advertise less / Foreign companies advertise more, taking up the slack and keeping domainers incomes afloat?
Maybe?
Or maybe both U.S. and foreign companies start to advertise more in a weak economy? U.S. dompanies doing it to boost quarterly numbers, foreign b/c the dollar is cheap to buy.
.
.
- Impact
- 3,991
hanny said:
recession.org is a great domain! Would love to see it turn into a site exposing the Federal Reserve and highlighting how the banking system has been unconstitutionally taken from the people in the form of a group of bankers who print as much money as is 'in the best interests of the Fed' while the number of created dollars is completely hidden from everyone, even congress! (M3)
Woodrow Wilson said this upon realizing he destroyed the banking system and enslaved his nation by allowing the a central bank (specifically stated by the founding fathers to never let this happen) to regulate and control the money supply.
"I am a most unhappy man. I have unwittingly ruined my country.
A great industrial nation is controlled by its system of credit.
Our system of credit is concentrated. The growth of the nation,
therefore, and all our activities are in the hands of a few men.
We have come to be one of the worst ruled, one of the most completely
controlled and dominated governments in the civilized world.
No longer a government by free opinion, no longer a government by
conviction and the vote of the majority, but a government by
the opinion and duress of a small group of dominant men." Woodrow Wilson , three years after allowing this law to be enacted while much of congress was already on Christmas vacation and knew nothing or little of it.
By definition the US is in a recession as its not exactly hidden from us what the
definition is
The US has two consecutive declining quarters of GDP already
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I think I am noticing a drop in general web services costs, and domain names on top of that. The domainers are certainly hit, and you know what is scary, there looks like things show no signs of rebound to stronger activity on the near-term.
Domain market may continue to struggle, as well as other markets. I think the Government and Federal Reserve should act quickly to put the economy on revocery again.
Side note, the dollar has lost a lot of its value, it scored about $1.60 versus euro, and pound scored $2, and many currencies like australian dollar, canadian dollar, swiss franc are almost as valuable as one dollar.
Actually anyone who has assets in U.S. dollar now is suffering, and I think also that people will just sell their assets of U.S. dollar amid fears that it may fall further.
Domain market may continue to struggle, as well as other markets. I think the Government and Federal Reserve should act quickly to put the economy on revocery again.
Side note, the dollar has lost a lot of its value, it scored about $1.60 versus euro, and pound scored $2, and many currencies like australian dollar, canadian dollar, swiss franc are almost as valuable as one dollar.
Actually anyone who has assets in U.S. dollar now is suffering, and I think also that people will just sell their assets of U.S. dollar amid fears that it may fall further.
I believe it will eventually, even globally.
You can somewhat predict future by analyzing past.
It's known US economy will effect other countries.
It's like domino effect. It's matter of when.
Read about "Great Depression".
What caused it.
What did govt. do and did it work?
Back to present...
Govt. lowering interest rate, Dรฉjร vu anyone?
What make govt. think it will work this time?
Lowering interest rate will only benefit those who
have best credit rating, rich.
Those who need help, poor, bad credit rating, lots of debt,
won't be able to get lower rates since getting a loan is harder
than ever before.
I am a optimist, but, I think worse is yet to come
Vicious cycle is already in motion.
You can somewhat predict future by analyzing past.
It's known US economy will effect other countries.
It's like domino effect. It's matter of when.
Read about "Great Depression".
What caused it.
What did govt. do and did it work?
Back to present...
Govt. lowering interest rate, Dรฉjร vu anyone?
What make govt. think it will work this time?
Lowering interest rate will only benefit those who
have best credit rating, rich.
Those who need help, poor, bad credit rating, lots of debt,
won't be able to get lower rates since getting a loan is harder
than ever before.
I am a optimist, but, I think worse is yet to come
Vicious cycle is already in motion.
- Impact
- 49
When over printing of money chases the goods in the economy, the goods go up in price. Is that good for domaining?.
Well about a year ago inflation in Zimbawee was 5000 %. Today it is over 24000 %.
What does this mean?
It means today if you owned a domain that was worth $5,000 a year ago, that today you can sell it for over $24,000 if you lived in Zimbawee, So Africa! Maybe you say that is good. Is it good?
You decide if a higher price equals more money. It depends how dear the money is. To have inflation in the first place proves the money is not dear. To get inflation a government has to print oodles of money, then inflation happens.
In a inflationary economy there is more money than goods, so the price of those goods skyrocket.
If you had a decent domain and you lived in Zimbawee, would you sell it for $24,000?
Many decisions will come to you.
One is, will the paper dollars you get that are almost worthless go up in value? Hardly, people are are rushing around trying to get rid of them as everyday the money is going down even more.
The scene for the U.S. dollar is not a pretty one as the recent dollar give aways of $(600.) to every taxpayer to stimulate the economy and the huge amounts of money to bail out Wall St, ( Bearn Stearns baliout by U.S.) add to this all the money the Fed is now printing to bail out the loan and housing markets. This shows us the government is petrified about what is to come.
You should be too!
So much money is being printed that inflation is the next phase in the economy. Thats why gold/ silver is being bought up.
What is inflation?
Inflation is the way any government that prints money out of thin air makes you their slave. You have to work harder and your family has to work harder to buy the same things it did before.
Think about it this way.. you place $5,000 in the bank, one year later everything is more pricey. Your money in the bank buys way less goods as your government printed too much money. So for all your efforts of saving, you get a loss when you go to purchase items.
Thats the nature of money today, do you want dollars that buy nothing much, or do you want to ride it out and keep your domains, untill inflation is over?
A wheel barrow of dollars or keep the domain. Its your choice.
If a person wants to give you a wheelbarrow of dollars for your best domain, you have a choice. Take the dollars that are going to buy less due to inflation or pass.
Well about a year ago inflation in Zimbawee was 5000 %. Today it is over 24000 %.
What does this mean?
It means today if you owned a domain that was worth $5,000 a year ago, that today you can sell it for over $24,000 if you lived in Zimbawee, So Africa! Maybe you say that is good. Is it good?
You decide if a higher price equals more money. It depends how dear the money is. To have inflation in the first place proves the money is not dear. To get inflation a government has to print oodles of money, then inflation happens.
In a inflationary economy there is more money than goods, so the price of those goods skyrocket.
If you had a decent domain and you lived in Zimbawee, would you sell it for $24,000?
Many decisions will come to you.
One is, will the paper dollars you get that are almost worthless go up in value? Hardly, people are are rushing around trying to get rid of them as everyday the money is going down even more.
The scene for the U.S. dollar is not a pretty one as the recent dollar give aways of $(600.) to every taxpayer to stimulate the economy and the huge amounts of money to bail out Wall St, ( Bearn Stearns baliout by U.S.) add to this all the money the Fed is now printing to bail out the loan and housing markets. This shows us the government is petrified about what is to come.
You should be too!
So much money is being printed that inflation is the next phase in the economy. Thats why gold/ silver is being bought up.
What is inflation?
Inflation is the way any government that prints money out of thin air makes you their slave. You have to work harder and your family has to work harder to buy the same things it did before.
Think about it this way.. you place $5,000 in the bank, one year later everything is more pricey. Your money in the bank buys way less goods as your government printed too much money. So for all your efforts of saving, you get a loss when you go to purchase items.
Thats the nature of money today, do you want dollars that buy nothing much, or do you want to ride it out and keep your domains, untill inflation is over?
A wheel barrow of dollars or keep the domain. Its your choice.
If a person wants to give you a wheelbarrow of dollars for your best domain, you have a choice. Take the dollars that are going to buy less due to inflation or pass.
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Here is what eMarketer is saying will happen with advertising in 2008 and beyond.
But you do have to take this with a grain of salt b/c it has to be based on the assumption that the dollar "holds":
http://www.internetretailer.com/dailyNews.asp?id=25778
.
But you do have to take this with a grain of salt b/c it has to be based on the assumption that the dollar "holds":
http://www.internetretailer.com/dailyNews.asp?id=25778
.
As a UK resident I don't know exactly what's going on in the US economy, but as a fairly competent economist I can tell you a few things:
With almost any economic problem, small businesses suffer. This means less start up companies, less serious internet ventures and the like - who are the primary end users of LLLs, LLLLs, pronouncables, brandables... anybody disagree?
And without end users, domainers have no incentive to buy to resell (which accounts for the majority of activity in said areas, in my opinion).
In short, if the troubles you're having have noticeable negative impact on small businesses, we're going to have a very rough few years until it recovers.
With almost any economic problem, small businesses suffer. This means less start up companies, less serious internet ventures and the like - who are the primary end users of LLLs, LLLLs, pronouncables, brandables... anybody disagree?
And without end users, domainers have no incentive to buy to resell (which accounts for the majority of activity in said areas, in my opinion).
In short, if the troubles you're having have noticeable negative impact on small businesses, we're going to have a very rough few years until it recovers.
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End-user sales might dip as discussed, but traffic domains will probably continue to do well, especially since internet traffic is going to continue to boom in Asia, India, etc.
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Interesting,
except, online marketing cannot be undersstood in 2012.
Geez, how can they even have the balls to project what online marketing will be in 2012. Who thought one year ago the bottom would fall out of the real estate market overnight, ( I did) and the economy take such a major turn. It was only a year ago that most people thought the economy would continue to boom.
I remember watching a major business channel a day after the first aftershock of the real estate market took a big plunge and the Dow Jones droppped 300 and some points in one day. People were scared what would happen.
Heres what happended, the president got on national tv and declared the U.S. economy is strong.
Oh really?
Only six months after that speech, the housing market is in turmoil, the economy is slowing, so much money has been lost in Real Estate the U.S. government has done the unthinkable. They have propped up the banks, they have propped up big business, they have propped up every American bottom line with free money, ( $600. for every taxpayer) they have propped up the finacial investors, ( Bearn Stearns investment bank) to the tune of hundreds of billions of dollars.
Is this good for the economy? Hardly, it is a government running scared and you should be too. All this money is only white washing the problems and soon that extra money sloshing around will push up prices for just about everything. Inflation is the worst scenario for Americans over burdened as they are today.
Will this mountain of money being printed stall the coming bad times?. Maybe, for a short while, then it will be so much more of a bigger problem as this is alot of money they are throwing into the economy.
We have not seen anything yet. I suspect for a while domains will continue to go up in value as more cash is washing thru the system. Then we will see things happen like happended to Real Estate, ( prices doubled in one year) and domains may seem to making huge increases.
When the dust settles one likely event will be a money contraction. That contraction will slow the economy down very quickly, if the advertisers have factored in these scenarios then they may be right.
Personally projecting out to 2012 is impossible to do with this government and the way money is created and their statements are more of wishful thinking.
Who the hell can really see what the future is when we have Berneke and the Fed playing doctor feelgood. Shoot up a little too much money into the economy and its all over for the dollar and the make believe worth of advertising.
except, online marketing cannot be undersstood in 2012.
Geez, how can they even have the balls to project what online marketing will be in 2012. Who thought one year ago the bottom would fall out of the real estate market overnight, ( I did) and the economy take such a major turn. It was only a year ago that most people thought the economy would continue to boom.
I remember watching a major business channel a day after the first aftershock of the real estate market took a big plunge and the Dow Jones droppped 300 and some points in one day. People were scared what would happen.
Heres what happended, the president got on national tv and declared the U.S. economy is strong.
Oh really?
Only six months after that speech, the housing market is in turmoil, the economy is slowing, so much money has been lost in Real Estate the U.S. government has done the unthinkable. They have propped up the banks, they have propped up big business, they have propped up every American bottom line with free money, ( $600. for every taxpayer) they have propped up the finacial investors, ( Bearn Stearns investment bank) to the tune of hundreds of billions of dollars.
Is this good for the economy? Hardly, it is a government running scared and you should be too. All this money is only white washing the problems and soon that extra money sloshing around will push up prices for just about everything. Inflation is the worst scenario for Americans over burdened as they are today.
Will this mountain of money being printed stall the coming bad times?. Maybe, for a short while, then it will be so much more of a bigger problem as this is alot of money they are throwing into the economy.
We have not seen anything yet. I suspect for a while domains will continue to go up in value as more cash is washing thru the system. Then we will see things happen like happended to Real Estate, ( prices doubled in one year) and domains may seem to making huge increases.
When the dust settles one likely event will be a money contraction. That contraction will slow the economy down very quickly, if the advertisers have factored in these scenarios then they may be right.
Personally projecting out to 2012 is impossible to do with this government and the way money is created and their statements are more of wishful thinking.
Who the hell can really see what the future is when we have Berneke and the Fed playing doctor feelgood. Shoot up a little too much money into the economy and its all over for the dollar and the make believe worth of advertising.
The whole world will suffer once the U.S. Economy collapses. I hate to brag but pretty much every country depends on us. It will be quite interesting to see what happens in the next few months as the dollar declines more & more. Funny thing is the US dollar has always been worth nothing, as it's not backed by anything!
As far as I'm concerned domains aren't a hot commodity in the long run compared to Agriculture, Gold, and Silver.
As far as I'm concerned domains aren't a hot commodity in the long run compared to Agriculture, Gold, and Silver.
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- 81
The Dollar used to be backed by gold and silver, and much of the coinage was made with silver, and much earlier gold also. Outside the silver Eisenhower Dollar, all other coinage made with silver was discontinued in 1964 and then, I think it was officially announced around 1970 or so that nothing would be backing the dollar anymore.
The gold at Fort Knox used to guarantee the value of the dollar, then they claimed it was a "economy based" index upon removing the valuable metal backing that now determined the value. We have operated that way now for over 30 years.
It's our relationship with the Saudis that helps these days. They have promised to always ask for payment in Dollars and that helps to inflate the Dollar's value. In return we have agreed to help keep the Saudi family in power indefinitely, hence all the personal trips for 30 + years by U.S. presidents and other diplomats. The Saudis will abandon the Dollar if we let things get too bad, after all they don't want to be piss broke - IMO. It's oil indirectly, that helps keep the value up, and the U.S. are big oil buyers. It's a marriage of sorts. Big money.
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The gold at Fort Knox used to guarantee the value of the dollar, then they claimed it was a "economy based" index upon removing the valuable metal backing that now determined the value. We have operated that way now for over 30 years.
It's our relationship with the Saudis that helps these days. They have promised to always ask for payment in Dollars and that helps to inflate the Dollar's value. In return we have agreed to help keep the Saudi family in power indefinitely, hence all the personal trips for 30 + years by U.S. presidents and other diplomats. The Saudis will abandon the Dollar if we let things get too bad, after all they don't want to be piss broke - IMO. It's oil indirectly, that helps keep the value up, and the U.S. are big oil buyers. It's a marriage of sorts. Big money.
.
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