The IT Spending Issue

I’ve been arguing that there are strong similarities on at least one level between the U.S. debt ceiling meltdown this summer and the current Eurozone mess. The level that I’m interested in is how it affects the way people think about the future and the economy. The debt ceiling debate caused delayed spending and a loss of confidence, which played out in the public markets as well. We will are in the midst of seeing a comparable effect from Europe, with the extra “benefit” of austerity kicking in and causing apparent weakness to become real, thus producing an extra kick to the economic shins.

This chart from UBS helpfully summarizes the effect in the the IT sector:

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Related posts:

  1. Janjuah on the Debt Ceiling
  2. Anti-Debt Ceiling Sorts, Innumerate, or Pining for Great Depression 2.0?
  3. Guide to Writing About Greece For People Who Can’t Bear To Write About Greece
  4. Tech Spending Increasingly Correlated to Economy
  5. CalPERS Invokes VC Secrecy Law on ITU Issue