:29:03
The capitalization of these,
:29:06
higher than expected
returns boosted equity prices,
:29:09
generally beyond that expected,
:29:11
by the enhanced rise in real income.
:29:14
The elevated level of light vehicles sales for example,
:29:17
has put more vehicles on the road
than the industry could sustain.
:29:21
And even though demand for a number,
:29:23
of high tech products was doubling
or tripling annually,
:29:26
in many cases new supply
was coming on even faster.
:29:30
Overall capacity
in high tech manufacturing industries,
:29:33
rose nearly 50% last year.
:29:36
Well in excess of it's rapid rate of increase,
:29:39
accordingly the slowdown in the economy,
:29:42
that began in the middle of last year intensified,
:29:44
perhaps even to the point,
:29:46
of growth stalling out
around the turn of the year.
:29:48
As the economy slowed,
equity in prices failed,
:29:52
especially in the high tech sector,
:29:54
were previous high evaluations
were being reevaluated,
:29:59
resulting in significant losses
in some investments.
:30:03
Clearly some slowing in the pace
of spending was necessary.
:30:06
If the economy was to progress,
:30:09
in a balanced and sustainable growth.
:30:14
With the process likely intensified
:30:16
by the rise in the cost of energy,
:30:45
inventory sales ratios grows only slowly,
:30:47
even after the policy actions taken in January,
:30:52
the risk continues still towards...