When the habits of millions of consumers change....

greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread

We've all heard how the government and the banking industry is worried about mass movement by millions of consumers as it pertains to stocking up, and pulling money out of the banks, because it could cause tragic effects.

Well, what happens when corporations do the same? many are junking old computers and upgrading all of them, when normally they'd buy the computers over time. (i.e. my company today got rid of a computer that was perfectly fine, except it wasn't compliant)

when all these companies purchase computers around the same time period (between now and let's say march of 2000), won't this drastically hurt the market for computers? will businesses be willing to buy a bunch of new computers again in fall and winter of 2000, when a lot of them just bought new computers THIS year? so then what will happen to the computer industry, as a whole? to Intel and IBM's profit margins?

just a thought-- if you think its off base, or you want to elaborate on the idea, post.

-- Super (Slfsl@yahoo.com), August 24, 1999

Answers

Super, When businesses do it, it stimulates the economy! If people do it, they are panicking, hoarding, and endangering the economy, alas.

-- Mara Wayne (MaraWayne@aol.com), August 24, 1999.

Super, the Wall Street Journal today mentioned how corporations are changing their borrowing habits "just in case" for Y2K. The article did not describe how that would bring down the economy, but perhaps it will be in a later article. After all, if _I_ change my spending habits, it means I am a panicked doomer and could bring down banks, etc. Corporations are doing what I am doing, only on a much bigger scale. Yet, nobody blames them.

-- Margaret (janssm@aol.com), August 24, 1999.

For whoever sniffs money let him sniff, but right now, I'm sniffing a real forest fire!!!! Talk later, I hear the bombers flying overhead. I've got to protect my Y2k stash, ammo, shack, etc.......I'll let you know how it turns out. DOF (Department of Forestry) is coming door-to-door evacuating..I won't leave, I will protect what is mine and what I have worked for. Gotta get going...bye

-- flamejumperr (flamejumper@flamejumper.rcom), August 24, 1999.

Super - I think there are a couple of other factors that will further complicate the issue of computer sales.

First, the supply chain appears as shaky in Asia as anywhere, so enough parts might not be available next year anyway. (Do you remember the recent lights-out in Taiwan? Apparently a few hours off the grid was enough to do major damage in some of the computer components manufacturers there.) The CEO of SunMicrosystems is already on record that Sun could have a tough time next year assembling computers.

Also, if there is enough electrical instability next year, then there will be continuing demand for replacement equipment.

-- Brooks (brooksbie@hotmail.com), August 24, 1999.


also see the beanie baby thread for discussions about mass consumer changes.....

-- Super (Slfsl@yahoo.com), August 24, 1999.


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