Google's CEO calls economy 'pretty dire'

(Credit: Dan Farber/CNET)

Google CEO Eric Schmidt expects 2009 to be a "tough, tough" year and he warned that the search giant is "not immune" from the worsening economy.

The search giant's chief touched on a wide variety of topics and, specifically, how they affect Google, during an on-stage chat with tech analyst Mary Meeker during the Morgan Stanley Technology Conference held Tuesday in San Francisco. But he focused mostly on the economy, calling the current climate "pretty dire" and adding that he doesn't expect it to improve until next year.

"It obviously will affect the online advertising market because our systems are so tightly tuned. If customers are buying less, it will eventually be reflected in CPCs and CPMs," he said, referring to cost per click and cost per 1,000 impressions, respectively. "We are not immune to this."

Schmidt also said that Google "was pretty inactive right now" on the mergers and acquisitions front, blaming unfavorable prices.

"The good news is we have lots of capital," Schmidt said. "The bad news is we're still trying to get everybody into the model that we really want in terms of M&A. And I think it'll start soon, but it's pretty inactive right now."

When asked about Twitter during an audience question-and-answer session, Schmidt said Google "was in favor of all these new communications mechanisms."

"Speaking as a computer scientist, I view all of these as sort of poor man's e-mail systems," he said. "They have aspects of an e-mail system, but they do not have a full offering."

"Twitter's success is wonderful and it shows you that there are many, many ways to reach and communicate, especially if you are willing to do so publicly," he said while touting the success of Google's instant messaging system.

Schmidt also had kind words for Yahoo CEO Carol Bartz, who also appeared at the conference, calling her a "fine and able CEO."

[Orion Blastar]

Yes The Great Collapse is happening. Even the EU is feeling this and wants the USA to bail them out, but who is going to bail out the USA, China? We keep borrowing money from China for bailout bills.

Spending all of that money made the Dow drop from 14,000 to 7000, and every day it drops lower. I no longer have to worry about my IRA now, as it is almost worthless. Looks like I won't have anything left over for retirement if Social Security still exists and there is anything left of my IRA.

This is the big one that will make The Great Depression look like a Golden Age.

[Commander_Spock]

Re: "Yes The Great Collapse is happening. Even the EU is feeling this and wants the USA to bail them out, but who is going to bail out the USA, China? We keep borrowing money from China for bailout bills..."

Here is a very simple solution (litmus test) to fix the world's economic woes. Fix the IBM's OS/2 Operating System and The Concorde so that it flies again commercially....; and, WALLA!

Hint, Hint, Hint..... Why should some people's labor go in vain; and, don't the rest of ya all know what ya doing???

Live Long And Prosper - If Ya Can; or, down, down ya go!

[t8]

@ Commander_Spock

What planet are you from?

Oh, Vulkcan.

Sorry to announce the bad news Vulcan, OS/2 Wart is dead and you are dreaming if you think a proprietary OS, with few apps supported is going to be better than a free open source OS.

Wake up! If anything, Linux is greatly suited when there isn't much money to throw around.

[Commander_Spock]

Hey "t8"! Re: "[... Wake up! If anything, Linux is greatly suited when there isn't much money to throw around...]"

What does your intelligence tells you after years and years (and millions of dollars) what it the percentage "internet connectivity" of Linux as against 90% market share Code-Base OS/2 (Windows); and, that's how "Dead OS/2 (eComstation) Is"!

See you in Space (Cloud)... The Next Frontier!

Cheers!

[Commander_Spock]

Hey folks! Was this the "dude" from Google that went into space with the aid of the OS/2 Russian Launch Rockets and is now telling the world to expect "2009 to be a "tough, tough" year and he warned that the search giant is "not immune" from the worsening economy.

How about if he tells us what is going to happen to the world's economy 20 years from now (let us call this from a long term point of view) in an upside down like when flying in space. Wow!

Now, let us all go and do the "long term economic projections" on dem Google Androids. Cool!

[directorblue]

You mean the man Google endorsed for President has continued to march the United States towards Socialism? And the stock market and general economy have responded accordingly?

Rather than a "War on Poverty" or a "War on Drugs", this man is waging a "War against Wealth"... punishing high achievers, charities, small businesses and other engines of growth and compassion.

The stock market is the greatest prediction engine on the planet. It has weighed in the disastrous policy prescriptions of socialism and wealth redistribution, which have never worked and can never work.

Thanks, drones!

[Commander_Spock]

Re: "[... The stock market is the greatest prediction engine on the planet. It has weighed in the disastrous policy prescriptions of socialism and wealth redistribution, which have never worked and can never work...]"

Well, here is where Commander_Spock and Crew will respectfully beg to disagree with you. You see, "Technology Rules The Universe" so, how in the name of "scientific deduction" can "Carbon Units" without the knowledge and skills to build and fly an "Super-Sonic Transport" craft like that of the "Concorde" (one of which is sitting on an decommissioned aircraft carrier in New York's Hudson River) be considered the "the greatest prediction engine on the planet"???

So, how about having some materials scientists and technologists around the world help you all make some "economic predictions" about how companies like Air France, British Airways.... will perform.

C-O-M-P-U-T-E-R, W-A-K-E U-P P-L-E-A-S-E! And, you get the "Information Technology (IT) Drift!

Now, Fasten Your Seat Belts For Rides At Super-Sonic Speeds!

Live Long And Prosper!

[Commander_Spock]

Oh, Oh.. This should have read: "Now, Fasten Your Seat Belts For Rides At Super-Sonic (WARP) Speeds!

[dascha1]

"Twitter's success is wonderful and it shows you that there are many, many ways to reach and communicate, especially if you are willing to do so publicly,"

In other words, web users are getting bored of using search engines, so the time they devote to online has been distracted by something new and shinier. And to boot, someone running the show going deeper into debt and saying no to buy-outs until the Trillionaire status is attained.

We need more web sites and media brokers!

[Commander_Spock]

Re: "[...And to boot, someone running the show going deeper into debt and saying no to buy-outs until the Trillionaire status is attained...]"

Read one of Commander_Spock's comment above "dude". When are certain "scientific deductions" are made (Missions Accomplished) we arrive at what we call "international standards" and when you can rely on the "Baby Milk Formula, the Pet Food and a "Quiet" Super-Sonic Ride... then - WALLA!

[Commander_Spock]

Re: This story's headlines reads: "Google's CEO calls economy 'pretty dire'" What "economy (is) 'pretty dire'??? Come on, Cowboys Bill, Allen, you.... can take all the "upper stratospheric rides" and still chump change for rides on "The Concorde" or the CITI Special - the Dassault Falcon 7X,!

Re: "Citi Jet Purchase: $50 Million, 12-Seat Plane Despite $45 Billion Bailout"

http://www.huffingtonpost.com/2009/01/26/citi-jet-purchase-50-mill_n_160807.html

So, party like it is 1978!

[lyntone]

It is not just housing that got us in this Depression! It Started when Bill Clinton gave China "most favored nation status! There went the good paying, middle class, factory jobs! Bill Clinton was and is a Republican, his wife was on the Walmart board and Walmart got the most from that trade deal!
Now Bill and Hillary are multi-millionaires........... Connect the dots!........ Bill is the modern day Benedict Arnold!