The Federal Home Loan Mortgage Corporation (FHLMC), or Freddie Mac (NYSE: FRE), today announced a net loss of $2 billion in the 3^rd quarter 2007 (or $3.29 per share), and the need to raise anywhere from $1-4 billion in order to help cover their shortfall. As of this writing, Freddie Mac’s stock had fallen by over 32% today. The NYSE as a whole has fallen due to this news.

Surely this is not a good thing for business in the short-term, and, in a way, probably not long-term either. With the financial world so interlinked, this news from Freddie Mac has driven the stock market downward, or at least has kept it from gains it might otherwise have experienced. With stocks faltering and the economy dragging, businesses will suffer – people will have less money and less consumer confidence to spend. There is a certain negative ripple effect throughout the economy.

That said, however, this was possibly very difficult to avoid, and at this point, it is necessary to get Freddie Mac, other businesses, and the economy healthier. The stock market has pulled back dramatically in the past few weeks (NYSE: DOW), and it may continue to pull back. But these are natural adjustments the economy must undergo in order to guard its own health.

Therefore, my advice to businesses: don’t overreact. Don’t do anything drastic. Keep plowing ahead, tighten and manage your costs, increase your savings (make sure you have a comfort cushion of liquid capital you can fall back on), provide value to the consumer with your product or service, and be patient. Maintain calm. Keep in mind that these economic fluctuations are necessary and a natural result of capitalism – they’re a positive thing. Everything can’t always be perfect and blossoming; the wise and successful businesses are the ones prepared for the lean times.