Some See Good Economic News on the Horizon
Optimistic high-tech analysts say, "As Silicon Valley goes, so goes the U.S."
Feb, 27, 2008 — -- Federal Reserve Chairman Ben Bernanke is expected to suggest another interest rate cut today when he appears before Congress with an assessment of the nation's economy.
With plummeting home prices, foreclosures on the rise and prices for everything from gasoline to milk increasing, it's not hard to find bad economic news.
But some who work in Silicon Valley, the country's high-tech capital, see good news on the horizon.
"As technology regions go, the rest of the country quickly follows," economist Russ Hancock said.
Recent history has borne that out — when tech took a tumble in 2000, it brought the country's economy down with it.
And Silicon Valley tech workers are, for the most part, feeling optimistic.
"A person like me, if I quit my job today, I could be at a whole other place tomorrow and it wouldn't be that difficult," said Jim Kellis, an employee at a Northern California high-tech company. "Everything's looking pretty good."
Some economists see tangible signs of an economic uptick as well.
"The robust global economy is a factor helping the U.S. and it may even keep the U.S. out of recession," said Joseph Lavorgna, the chief economist for Deutsch Bank.
Other positive signs: Exports are on the rise, interest rates continue to fall and Congress has jumped in with a stimulus package and tax rebates that should wind up in American's mailboxes before summer.
Still, some of the nation's foremost financial minds offer mixed reviews, with the former Fed chairman worried the economy has yet to hit bottom. Alan Greenspan said he wouldn't be surprised if this recession is deeper than the past two.
Former General Electric CEO Jack Welch, however, predicted that Americans will feel like they're in a recession but really won't be in one.
Economist and author Ben Stein agreed, saying, "Our economy is nowhere near as bad as the media is making it out to be."