Larry Wachtel Inventory Quotations

Tech is suffering from one big inventory overhang. It's going to take a long time to work through that.

It's primarily a manufacturing recession. Just because it hasn't kicked in yet doesn't mean that eventually it won't work its way through, but it has to be accompanied by this inventory draw down.

The differentiation is where the recession is coming from. When you're in a consumer-housing situation, the rate cuts have a very dramatic effect and hit much sooner. But when you're in a manufacturing recession involving overcapacity and inventory overhang, it's not going to make people borrow.