Is the San Jose area (Silicon Valley) recession proof? (casinos, live in)

[Kevroqs]

With all those high tech companies (Apple, HP, Intel) does this make Silicon Valley being that lots of residents work for those companies?

[jbunniii]

Originally Posted by Kevdawgg

With all those high tech companies (Apple, HP, Intel) does this make Silicon Valley being that lots of residents work for those companies?

I'm going to guess you didn't live here during 2001-2005 or so? Of course Silicon Valley is not recession proof. Indeed, its dependence on tech means that its economy will take a bigger hit than anywhere else any time there's weakness in that sector.

[Kevroqs]

Originally Posted by jbunniii

I'm going to guess you didn't live here during 2001-2005 or so?

Correct! I live in Nevada and the job marker over here sucks. Casinos has taken a turn for the worse, damaging the economy. On the bright side, there has been a very little increase in gambling revenues. Not good enough to get Nevada back on track.

Originally Posted by jbunniii

Of course Silicon Valley is not recession proof. Indeed, its dependence on tech means that its economy will take a bigger hit than anywhere else any time there's weakness in that sector.

I doubt technology will have a weakness because things are getting high tech now.

[TheGreatCurve]

Originally Posted by jbunniii

I'm going to guess you didn't live here during 2001-2005 or so? Of course Silicon Valley is not recession proof. Indeed, its dependence on tech means that its economy will take a bigger hit than anywhere else any time there's weakness in that sector.

Or between 1990-1996 before the dot-com bubble brought Silicon Valley out of a recession.

[TheGreatCurve]

Originally Posted by Kevdawgg

I doubt technology will have a weakness because things are getting high tech now.

Don't forget that Apple was on the verge of going out of business in 1997. And tech companies are adding more jobs outside of Silicon Valley and overseas because it's so expensive to do business in SV/CA and also to be closer to their fastest growing markets.

[roadwarrior101]

Originally Posted by TheGreatCurve

Don't forget that Apple was on the verge of going out of business in 1997. And tech companies are adding more jobs outside of Silicon Valley and overseas because it's so expensive to do business in SV/CA and also to be closer to their fastest growing markets.

Yes, but you're still seeing more VC here than anywhere else. Companies are incubated here and as they scale, they will diversify overseas and in other parts of the US. This is to both save costs and to be closer to the customer. However, tech companies ARE also adding lots of jobs in the Silicon Valley.

[bigdumbgod]

The brains and tech seed money are here. The slave/child labor that actually makes the products is elsewhere.

[TheGreatCurve]

Originally Posted by roadwarrior101

Yes, but you're still seeing more VC here than anywhere else. Companies are incubated here and as they scale, they will diversify overseas and in other parts of the US. This is to both save costs and to be closer to the customer. However, tech companies ARE also adding lots of jobs in the Silicon Valley.

The VC firms are also expanding overseas. Many now have offices in China, India, Europe, etc. and do a lot of their investing outside of the U.S. There's also a lot of growth in Internet companies in New York City with more investments. Heck, even Groupon is based in Chicago, and not in Silicon Valley.

[mysticaltyger]

Originally Posted by Kevdawgg

With all those high tech companies (Apple, HP, Intel) does this make Silicon Valley being that lots of residents work for those companies?

NO. NO. NO. NOT AT ALL. Whatever gave you that idea?

[mysticaltyger]

Originally Posted by Kevdawgg

I doubt technology will have a weakness because things are getting high tech now.

That's very incorrect. Tech often has a boom/bust cycle to it. And Silicon Valley is very high cost. The minute it's cheaper or easier to do something somehwere else, it moves outta here in a heartbeat.