You remember that piece I did a couple weeks or so ago on how the media CEOs were giving us clouds of rose-colored smoke and mirrors in their optimistic projections of the future?  And how I went off on Murdoch and Moonves for not seeing the handwriting on the wall?  Well, I’m not alone in the pessimistic projections–dig the word:

“The financial implosion occurring on Wall Street will hit Madison Avenue by 2009 with a force that will take down some media companies and prompt many to seek financial relief in digital interactive solutions,” MediaPost.com editor-at-large Diane Mermigas predicted Thursday. She cited respected RGE Monitor economist Nouriel Roubini who recently warned of an 18-month recession in which stocks and housing will fall 40 percent even as corporate debt climbs, banks fail, and the FDIC goes bust trying to cover insured accounts. “This will inevitably lead to companies reducing expenses, including their advertising and marketing budgets,” Mermigas predicted. She cited a study by TNS Media Intelligence that spending by advertisers in the second quarter, even before the current financial crisis hit, was down 3.7 percent from last year, the steepest quarterly drop since 2001.

Granted, this is a bit excessive–I personally say Roubini’s going a bit far in his outward projections of doom and gloom.  If the FDIC actually went full-on bust covering accounts it would be hell on earth, not a minor kink in marketing budgets.  For the FDIC to go bust would cause a run on the banks and we’d be at “Mad Max” level in about three months.

But even if it doesn’t go that far, Roubini’s right about one thing–corporate belt-tightening WOULD do serious damage to media budgets that depend heavily on advertising and product placement deals and the like.  Moonves, for example, was already counting on ad spending to carry him into the new year, if his own remarks are to be believed.

Brace yourselves, kids–this could be a real horrorshow.

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