Archive: September, 2008

While reading news and commentary on the financial crisis spreading its way around the globe I was struck with a difficult and somewhat scary thought. It is distinctly possible that national (or extra-national) governing bodies such as Congress, the EU or even the Canadian Competition Bureau might try to impose strict regulation on Google’s growth in the coming months. What would be the effect on the Internet and search advertising markets if that happened?

The US and UK governments are dealing with the deepest economic downturn since the 1930’s. The failure of several large financial institutions (starting last year in the UK) coupled with the federal bail-out of insurance giant AIG and complicated by the extraordinary US trade deficit and absurd levels of personal debt, makes the global economic outlook appear bleak at best. Regulators are wondering what might have been had there been stronger restrictions on the actions of financial institutions over the past seven years. The tone of the economy and of public opinion virtually guarantees greater regulation will be imposed on the financial sector after the post-bubble financial fallout has finished falling.