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To: Paul Engel who wrote (128790)	3/2/2001 7:00:00 AM
From: Road Walker	Read Replies (1) \| Respond to of 186894

Paul, re: "It's as if the technology economy has hit a black hole." Reading the quotes from the Oracle CC this morning. They were shocked at the cancellation of orders from top executives at companies that would clearly see lower costs from the implementations. What I think is going on. The slowdown in the economy was so sudden, I think most companies were caught off guard. The first reaction from the boardrooms would be "Stop all discretionary purchases, we need to cut costs NOW to make our quarter. We'll revisit each item as we have a better handle on the situation, to see if it makes sense". I'm guessing we could see a small improvement in tech revenues as companies get a handle on their business prospects, and restart cost saving projects. And if the economy improves somewhat, we could have significant upturn in tech revenues. But I'm just guessing. John

To: Paul Engel who wrote (128790)	3/2/2001 7:41:54 AM
From: Scumbria	Read Replies (2) \| Respond to of 186894

Paul, 9 months ago, I was hearing nothing but optimism from inside. The last couple of interest rate hikes in spring 2000 seem to have triggered a feedback loop of falling stock prices, reduced investment income, reduced expectations and spending, leading to further falling stock prices. Many large technology companies (like Dell) depend heavily on investment income. Dell has traditionally made more than 50% of their income by buying calls on their own stock. I don't think that having the newly elected President going around the country talking down the economy since December, has helped consumer confidence or spending any either. Scumbria