The New York Times (4/9, Richtel, Stone) reports, “Housing prices in Silicon Valley remain defiantly high. New BMWs and Saabs cruise Highway 101. But for the first time there are signs that the current economic downturn is taking its toll on the country’s cradle of technology and innovation.” The Times continues, “Job growth has slowed, start-up companies are hiring and spending more cautiously, and early-stage investors who nurture the start-ups with money and expertise are growing more frugal.” The region “feels as if it is on the cusp of a mood shift. On the one hand, its denizens say they feel fortunate to be working in a segment of the economy and living in a region that has been hurt far less than other parts of the country. They also express stubborn confidence in the inexorable shift to the Internet and the role that Valley technology companies will play in that transition. And they assert that they are not feeling anything like the pain that followed the collapse of the dot-com bubble, which led to big job losses, an exodus of talent, a plunging commercial real estate market and a significant drop in investment in start-up companies. But having assiduously clawed its way back from the dot-com bust, the Valley is again facing some tough conditions.”
Share and Enjoy:These icons link to social bookmarking sites where readers can share and discover new web pages.
Tags: 
Discussion
for “Silicon Valley Seeing Effects Of Economic Downturn”