economy?

[jasondbaker]

My technology business is feeling the impact.  We haven't laid anyone off but people aren't expecting raises this year.  New sales have dropped significantly.  We will probably finish the year flat -- which is better than most businesses.

My wife and I just went on a vacation to Punta Cana a couple weeks ago.  The airplane and the resort were packed.  When we go out to dinner in the cities the restaurants are packed.  We keep asking the question: "what recession?".

My sense is that people are trading down.  Meaning that instead of going to an expensive steakhouse they go to a moderately priced sports bar.  Instead of taking a dream vacation they go to a family friendly all-inclusive.  People are delaying purchases on luxury items -- including necessities like cars.  Many people are saving for a rainy day or pumping cash into 401k's (great time to get in the market if you retire in 20-30 years!). 

I believe the economy is going to get worse.  The recent stimulus bill may help this year.  But in the near future it will spur inflation and tax increases. 

I don't know how all of the diveshops in our region are surviving.  Some of them might be in bad shape right now.  I'll probably learn more next week at the GLSPS show.