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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Sampat Saraf who wrote (10320)	6/10/2004 12:10:49 PM
From: Cary Salsberg	Read Replies (1) \| Respond to of 25522

1. The unemployment rate is not pertinent to the discussion. If a former $100K engineer is working at Best Buy for $25K or has stopped actively looking for a job, then the unemployment rate is unaffected. 2. I think you are mistaken about the "commodization" and "maturity" of software. A while ago, I saw a TV show about the IIT (Indian Institute of Technology). The CEO of a major Indian software company had sent his son to Cornell because, while the son was admitted to IIT, his entry score failed to be among the highest which was necessary to gain entry to the software engineering program. Anecdotal, yes, but, certainly, very supportive of my contention. 3. The role of the US as major consumer is projected to decline as much more populous countries with faster growth rates increasingly come to the consumption table. This trend is promoted by outsourcing. 4. I am not sure what you are referring to when you describe capital deployed back in the US. Purchases of Treasury Securities and beach front property will do little to enhance the US jobs picture.

To: Sampat Saraf who wrote (10320)	6/10/2004 12:33:34 PM
From: Big Bucks	Respond to of 25522

Sampat-"To maintain its high wage status, US needs to continue to focus on products and industries which have not reached the maturity level of commoditization. And which products and industries might those be? It takes many years, tremendous capital outlay, and a trained workforce to bring a new technology or industry to profitability.... It doesn't happen overnight or without tremendous expense, which is why the telecom industry has suffered so much debt laden failure. Infrastructure development of any new industry/technology must have a viable economic agenda and consumer market to be successful. "Secondly, as long as US is the major consumer of the products/services produced by these outsourced jobs, any substantial decline in US economy would be harmful to the economies of the countries who depend on the outsourced jobs and these countries will keep on deploying their capital back in US to ensure viability of their major customer." I don't see any Chinese or Indian companies developing physical businesses or developing assets in the US. A few car plants financed by Japan is not really a justification of your argument. Where else are any foreign corporations building new industries or factories in the US? The rest of the upcoming industrialized nations see the US as a cash cow.....they will milk us until we have no more milk to give, and in the meantime they can expand their global market place with products that we will no longer be capable of producing.