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A few years ago a guy called Clive Ratner who owned a major jewellery chain in the UK, said in an interview that his stores sold crap. I don't remember whether his business actually went bankrupt, but it came to close as a result of the resulting publicity.
A lot depends on how people who are the subject of bad publicity handle it. I always felt that if Clinton had admitted a slip with Monica Lewinsky, he would have done himself far less damage than by lying about it.
But it can go either way, for example the talking banners thing here. I didn't like the bloody things, basically because I hate being in any webmaster area and subjected to gimmicks. But until a couple of days ago I couldn't have told you which program had used them.
Now I doubt I shall ever forget and IMO the people who used them came out of the ensuing debate (if you can call it that) a lot better than their critics.
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