Robert Smith said "I noted in his testimony this paragraph: The retrenchment in capital spending over the past year was central to the sharp slowing we experienced in overall activity. The steep rise in high-tech spending that occurred in the early post Y2K months was clearly not sustainable. The demand for many of the newer technologies was growing rapidly, but capacity was expanding even faster, exerting severe pressure on prices and profits. New orders for equipment and software hesitated in the middle of 2000 and then fell sharply as firms reevaluated their capital investment programs. Uncertainty about economic prospects boosted risk premiums significantly, and this rise in turn propelled, required or hurdled rates of return to markedly elevated levels. In most cases, businesses required that new investments pay off much more rapidly than they had previously." @ PoliticalQuotes.com

On the recordJanuary 24, 2002

I noted in his testimony this paragraph: The retrenchment in capital spending over the past year was central to the sharp slowing we experienced in overall activity. The steep rise in high-tech spending that occurred in the early post Y2K months was clearly not sustainable. The demand for many of the newer technologies was growing rapidly, but capacity was expanding even faster, exerting severe pressure on prices and profits. New orders for equipment and software hesitated in the middle of 2000 and then fell sharply as firms reevaluated their capital investment programs. Uncertainty about economic prospects boosted risk premiums significantly, and this rise in turn propelled, required or hurdled rates of return to markedly elevated levels. In most cases, businesses required that new investments pay off much more rapidly than they had previously.

Said by

Robert Smith

Oregon

Source

govinfo.gov

Editor's note · Context

Discussing economic insights from Chairman Greenspan during a Senate hearing.

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