Anyone following this?
http://news.bbc.co.uk/1/hi/business/6939757.stm
I heard a rumour this might be a big deal, and it seems to be panning out that way.
In summary there seem to be a lot of defaults in the non status (ie risky clients) mortgage market in the US. That is causing ripples throughout the markets as many countries were involved.
Who knows the impact on spreadsheet services?
Looks like overly optimistic modelling is partly to blame, reminds me of the endowment debacle we are just coming out of.
Cheers
Simon
Smurf on Spreadsheets 
Friday, 10th August, 2007 at 2:34 pm |
The consulting firm I work for was affected. We had a few consultants working for Dillon Read, a UBS owned hedge fund, which eventually closed for business due to significant losses in the sub prime market. I hear Bear Stearn’s funds and BNP’s are also suffering huge losses. I am now at an asset management firm and all we are seeing is red.
Friday, 10th August, 2007 at 2:58 pm |
It would mean that companies would be more worried about costs for a few years and yet would still need their numbers crunched. Spreadsheets will actually proliferate in that market.
You just have to make sure you keep your recievables tight in that kinda market ;-). They will be reluctant to write cheques sometimes (screwing their little suppliers when they have a cash-flow problem is normal in such a market – like it was in the early 90’s)
Dick
Friday, 10th August, 2007 at 3:00 pm |
This is also why I have always worked across multiple businesses in multiple market segments so I won’t get whacked by one particular problem (like this one).
Dick
Friday, 10th August, 2007 at 5:32 pm |
MacroMan BNP have just suspended some funds because they can’t value them.
Dick yeah I was thinking there could be an explsion of cheap shitty badly thought out spreadsheets, (or was that was caused it?)
In my financial posistion you make a good point about their credit worthiness, maybe not something I should rush into (at least until I have heard from the liquidators of my ex-client). I read on JOs a guy got 7c in the dollar in a similar case in the US.
Friday, 10th August, 2007 at 6:43 pm |
Simon:
“you make a good point about their credit worthiness, maybe not something I should rush into (at least until I have heard from the liquidators of my ex-client). I read on JOs a guy got 7c in the dollar in a similar case in the US.”
It doesn’t mean you don’t do business with people, it’s just that if you have ANY concerns just don’t do any more work until you get paid for each invoice. And also bill often (twice a month if necessary). If they don’t like it then dump ’em – let someone else lose money on them ;-)
Dick
Saturday, 11th August, 2007 at 1:57 am |
Hi Guys,
“Spreadsheets will actually proliferate in that market.”
I agree with that sentiment. Some work just has to be done – many corporates then lok at how they can implement a solutin on a tighter budget. Excel/Access based projects tend to increase in this environment.
“also bill often”
Agree too. Even for smaller projects now days I invoice to agreed milestones (deliverables) rather than upon project completion. This helps to ensure that the client has as much skin in the game as you have. (Don’t deliver the next milestone until the prior invoice is paid).
Cheers – Marcus
Saturday, 11th August, 2007 at 4:38 pm |
Guys:
In telling my wife about this thread she said “What about a retainer?” Good for her. Rather than you building up the work at YOUR risk, have them pay you a piece of cash up-front and YOU it down as you work. It’ll piss them off, but if you’re the best they can find then they’ll do it.
No question you don’t want to do this all the time but it is a good option in tough times where you have concerns about your client. Analyze how they pay the first couple of invoices and then decide.
Dick
Wednesday, 5th September, 2007 at 12:15 pm |
You can’t excel/access human stupidity :(