eBay a Haven in Hard Times

Fears of an economic slowdown may be taking their toll on the stock market, but a little recession may be just what it takes to jump-start eBay(EBAY Quote).

That's because consumers flock to the auction giant for cheaper goods when times get tough, while sellers become more adamant about moving items that might otherwise lie around.

And the boost in both buyer and seller activity ends up helping eBay's auction business.

"So, if you want a DVD player in this economic environment, you might be happy to have last year's DVD player at 50% off retail," eBay CEO Meg Whitman told Business Week back in March 2001, as the U.S. economy was entering its last recessionary period. "And we see people finding things in their garage that can raise thousands of dollars in cash. So we're seeing a pickup in sellers." ...