Can Blogging Withstand The Economic Storm?

Are bloggers whistling past the graveyard, in denial that the economic storm pounding the world won’t affect them?

Robert Scoble has come under fire from fellow bloggers for being too negative and not “trying to cast more of a positive light on the situation,” as Inquisitr writer Steven Hodson called for in comments.

Although Scoble admits to being “really freaked out” due to reports of losses earlier last week, the blogger said there is an economic storm headed bloggers’ way.

“My radar screen shows its full effects have not yet been felt in the tech industry for a variety of reasons. But it is headed here,” he wrote.

It’s not all Chicken Little drama, either.

Gawker Media’s Nick Denton told employees he expects “the environment next year will be bleak.” To prepare for the economic tailspin, Denton laid off 19 employees while hiring 10 to boost the revenue engines of his network: Gawker, Gizmodo, Lifehacker and Gizmodo.

Echoing Scoble’s warning of battening down the hatches, Denton told bloggers to prepare.

“We have to prepare for the worst, now, rather than when the worst comes upon us.”

Although not tied directly to the economic tumult, b5media has also trimmed its bloggers paychecks - this time blaming it on the software used to track visitor numbers.

One entire blog network — the business-oriented Know More Media — closed its doors August 1.

One bright spot for bloggers also appeared the same week as news of layoffs and pay reductions. Giga Omni Media raised $4.5 million led by Alloy Ventures.

In a realistic nod to the impact the current economic crisis will have on bloggers, blog network founder Om Malik said the new cash will serve as insurance against tough times in the tech sector.

“The whiplash-inducing bad winds that are plaguing the overall economy will cast a pall on Silicon Valley in general and online media as well,” he wrote on his blog.

That cash infusion from venture capitalists comes as VCs are bracing for companies already with weak financial footings to be swept aside.

“Raising capital will be much more difficult now. The name of the game in this environment … is survival,” Newsweek quotes investor Ron Conway. Conway helped finance Google and PayPal.

Sequoia Capital has read the riot act to the leaders of companies the VC finances.

So, will bloggers be affected by the economic disaster now spreading across the globe? This is a certainty that cannot be ignored — no matter how loud you whistle.