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To: Lizzie Tudor who wrote (159125)	8/28/2003 9:29:07 PM
From: Victor Lazlo	Respond to of 164684

<<Now, 3 years later these are bad times but it isn't due to some kind of "hangover" at least from what I can see. >> It's not bad times for homebuilders, renovation contrators, coffee chains, ISPs, medical technology, medical software, chipmakers, or dozens of other sectors. The economy GREW over 3% last we knew. But the point is, the bubble economy led to such heights that we are just now recovering from paying the steep price for, and washing out the excesses of, the fraud and greed of the clinton era, like the worldcoms and enrons and global crossings.

To: Lizzie Tudor who wrote (159125)	8/28/2003 10:28:30 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 164684

If offshoring was possible in say 1987, and companies could cut costs by 90% by hiring offshore workers, I can assure you they would have done it. They did, Liz. And earlier than that. ...the rest of us were having the time of our lives. Now, 3 years later these are bad times but it isn't due to some kind of "hangover" at least from what I can see. Look again, then. Overinvestment, especially in technology goods and services (by all sorts of businesses) and in capacity to produce even more of those same goods and services so in demand, was what allowed you and your friends in Silly Valley to have "the time of your lives." But the downside of overinvestment on the scale we saw in the late '90s is the inevitable bust, the "hangover" - a dearth of new investment in these same things. That, Liz, is what happened to tech jobs. And the bust in tech had ripple effects across most of the economy. The "offshoring" is just a long-running sideshow.