Part of the reason we're having so much trouble clawing out of the recession is that capital can't get out of the companies, because there's no market for common stock. Pools of money don't want to invest in early stage companies because there's no way to profit from the investment at the kinds of rates they need to succeed. The IPO market allowed venture capital investors to pull money out and earn a profit from investments in early stage companies.
Now, the infrastructure for offerings is vanishing, and without offerings, there's less investment in risky ventures.
Thanks to:
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EUROPEAN TECH WIRE -- June 18, 2003
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To Subscribe For Free: http://www.europeantechwire.com
o UBS Fires 500 Investment Bankers as Tech Downturn Hits
Zurich -- UBS, the world's sixth largest bank, announced on Wednesday that it will fire about 500 people at its investment banking unit, until recently known as UBS Warburg. The three-year bear market has seen revenues from mergers, acquisitions and equity issues fall, and has forced investment banks to cut 100,000 jobs in the past two years to shrink costs swollen by the tech and Internet boom. The major U.S. investment banks -- Goldman Sachs, Morgan Stanley, Merrill Lynch and Lehman Brothers -- cut nearly 4,000 jobs in the first quarter.
http://makeashorterlink.com/?X1FD527F4
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EDS to Cut 2,700 Jobs, Take Big Charge -
http://www.washingtonpost.com/wp-dyn/articles/A8947-2003Jun18.html?referrer=email
EDS Corp., the embattled No. 2 computer services company, on Wednesday
said it would restructure operations, taking a charge of $425 million
to $475 million and cutting 2 percent of its work force, or about
2,700 employees.
10:42:45 PM 
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