The capitalization of these,
higher than expected
returns boosted equity prices,

generally beyond that expected,
by the enhanced rise in real income.
The elevated level of light vehicles sales for example,
has put more vehicles on the road
than the industry could sustain.

And even though demand for a number,
of high tech products was doubling
or tripling annually,

in many cases new supply
was coming on even faster.

Overall capacity
in high tech manufacturing industries,

rose nearly 50% last year.
Well in excess of it's rapid rate of increase,
accordingly the slowdown in the economy,
that began in the middle of last year intensified,
perhaps even to the point,
of growth stalling out
around the turn of the year.

As the economy slowed,
equity in prices failed,

especially in the high tech sector,
were previous high evaluations
were being reevaluated,

resulting in significant losses
in some investments.

Clearly some slowing in the pace
of spending was necessary.

If the economy was to progress,
in a balanced and sustainable growth.
With the process likely intensified
by the rise in the cost of energy,
inventory sales ratios grows only slowly,
even after the policy actions taken in January,
the risk continues still towards...