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To: Don Earl who wrote (523)	12/13/1997 2:40:00 PM
From: Bonnie Bear	Read Replies (1) \| Respond to of 686

Don: there's tremendous overcapacity in tech sector. It's not just a bad quarter, it's a secular overcapacity problem like steel and autos. They make more than people consume. They will have to compete so viciously on price that profit margins will disappear. Every asian nation was betting its future on semi manufacturing. They can make their own, so who are they going to sell to now? Remember in the mid 80s when nobody thought U.S. companies has a chance against Japan because they produced goods with virtually no profit margin just to keep workers employed? We're there again, only now it is all of Asia competing with each other, as well as us.