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

To: cluka who wrote (24729)	11/20/2010 1:33:47 PM
From: Cary Salsberg	Respond to of 25522

SCE spending grew very rapidly from a very low "Great Recession" level. Recently, growth has leveled off and forecasts for 2011 are flat to up slightly. The good news is that all the equipment purchased in 2010 only modestly increased fab capacity. Not everyone in the US is out of a job with a foreclosed home. For those with a little money to spend, the price/performance and quality of life enhancement value of chip based electronics products and the network is hard to beat. The expanded Fed balance sheet has been largely offset by very low velocity of money in the system. It has not succeeded in driving economic activity. The budget deficit expansion is the result of falling revenue collection, items already budgeted, and items designed to help citizens and spur the economy. These have had a modest positive effect on the economy, but I don't associate technology purchases with budget deficits. Our economy is limping along with some indication of gradual improvement. Hopefully, gridlock in Washington will produce a compromise fiscal policy going forward. I believe above GDP growth is sustainable for the semi industry. In my "Its Different This Time" thread, I have addressed the sustainability of SCE growth in a growing world economy. The key is the change rate of fab technology and the rate of product improvement and cost reduction achieved.