Fear spread among Silicon Valley executives, many of whom were counting on the value of their stock options to cash in on the high-tech gold rush. A measure of the concern was reflected Wednesday in the region's daily newspaper, the San Jose Mercury News. D.C. Today, about half of all U.S. households own stock, up from just 32 percent in 1990. With the economy humming since 1992, unemployment has fallen to record peacetime lows and the nation's personal income rose 68 percent during the 1990s, fueling a consumer spending binge. The signs of worry extend beyond last week's stock stagger.
Some perspective is required, though.
Silicon Valley may be jittery, but the dot-com generation here is far from broke. Last week's Microsoft antitrust decision and the record volatility in the stock markets served as a wake-up call, but not an invitation to the unemployment line. High-tech talent is in short supply. Hotels in the valley are full of free-lance programmers flown in from other parts of America for contract work. There is an often-told joke here about the prospect that flimsy Internet companies might go under.