Perhaps you hadn't heard? Our economy has gotten bad enough that a major publishing house has suspended acquisitions -- at least for now...

I find this to be terribly sad. It's a hard bite to swallow.

What do authors and illustrators do with this sort of news?
I don't know. But I guess I tend to handle this kind of stuff by focusing on improving my craft.

A decade ago, while still in college, I had a conversation with a friend who asked me about the competitive nature of the art-world. She was wondering how I would handle it after graduation since I insisted that I wanted to be an artist. By the end of our conversation I had this mantra in my head:
"The best work gets through even in the worst of conditions; when you feel bad, work at becoming the best."

I still love that mantra. It empowers me. It's kind of a way to inflate my ego when my humiliating most humble inner critic comes out (you know the one -- "I suck, why do I bother? etc etc"). While I'm remembering that I'm not the best right now, I'm reminded that maybe if I keep working at becoming better, one day I can be.

So that's how I deal with scary news of certain publishers not acquiring anything for awhile. Shake it off. Realize it may take (more) years before anything of mine is published. Work at my craft. And be humbled, and grateful, very deeply and truly grateful, that I have the opportunity to make my work at all.