GV, Tony, Paul, and thread, RE: the economy
Some observations:
- office rental space: "the worst in 20 years" (SJMN article)
- Silicon Valley's head of the manufacturing group: "worst we've seen over a couple of decades"
- assembly house: "worst ever seen in 20 years"
Yet, Intel's report seems rosier than what the above alludes to, or what a person sees at say an assembly house, where production lines after production lines are shut down, maybe 60%. Why the contradiction? Is it because the large co's have moved more of their assembly overseas (I recall a press release in Q1 from various cos, but did they really move that much overseas?), if so, it could explain why they (SV Mfg head, assemblies) are locally seeing more pain than the rest of the economy? Or, is something more going on with the economy?
(Aside from the general economy malaise), the real estate's severe bust could be explained by the dotcom's that ran up the real estate. Assembly houses' unusually severe bust could be explained by the move of assemblies overseas. Just want to make sure nothing more sinister is going on here in the economy. Any opinions or insights?
The semiconductor biz has hit a bottom. But moving forward, what is this economic stew we're in here?
Regards,
Amy J |
