Intel kicked off the Cebit show today by wheeling out Craig Barrett to declare it will once again invest its way out of recession. The vendor flashed its Nehalem Xeon processor, confirmed it was speeding up its shift to 32nm and declared embedded processors the next big thing. Intel chairman Barrett opened the vendor's briefing …
Ha ha ha ha ha ha ha.
Intel's x86 obsession led to them flogging off their only hope in the embedded market, their ARM folks (largely folks they acquired from DEC some considerable time ago). Find me a high volume consumer/SoHo electronics market (ie an embedded market) where ARM isn't dominant and likely to stay that way, and I'll eat my hat. Have they emptied their warehouses full of unsold i860s, i960s, and I2O slideshows yet? Past performance isn't necessarily a guide to the future, and in Intel's case they have to hope it isn't. They've about as much chance of being a player in the embedded market as they have of dominating the 64bit market with IA64 (rather than their AMD64 clone).
UK money supply
That reminds me, lets take a look at the UK money supply:
Chart 1 shows 22% growth in money supply, compare it to Chart 2 and it's clearly securitisation related which I guess is how the BOE calls it's purchase of company bonds with freshly printed cash at prices the market won't pay. Funny money for funny bonds!
So if you wonder where the cost of the bailout of the UK is coming from, it's coming from the value of your savings and it will come in as an increase in prices for imported goods later. There is no such thing as free money.
"He said it was important for companies to continue to spend on R&D and upgrade plant so that they are positioned to take advantage of the upturn when it does come."
Only if you have enough capital stashed away (which is wise) to "upgrade plant" while the customer is staying away, waiting for better times. If this is not the case, you may well turn up on the auction block while the recession is still going on.