J,
The idea is that you've got to look from the other end. Look from final chip demand - which is 1/2 PCs, etc. Final demand is insuficient (less than expected) to keep prices from plunging, since planned for production was planned to satisfy final demand that's not quite there. If final demand picks fast, no big deal, if it does not, then big deal. Cause even now, despite much higher stock prices, the respective industries are not doing much better than 1 1/2 years ago. Some Cos. do better (Dell business is up X2, but staock price is up X6), but on the average, not good enough.
J+ |
