We want to open up Napa to new business.

There is a lot more to the processor business than selling processors. Controlling the supply chain and controlling product offerings is almost more important. And it's not just the supply chain, it's their manufacturing ability. They are way ahead in terms of manufacturing ability and economies of scale.

Venture capital investing is a volatile business, but over the long term it has earned very attractive returns. We have been in the venture capital business for more than 35 years. Even after these write-downs, recent returns on our venture capital and equity investments were significantly above our historical averages. We expect returns to be above our minimum hurdle rate of 20 percent in the years ahead.

HP's best business is printing and imaging and the company diluted that by buying Compaq,

I really think that the scare of the auto shock has run its course. I think business people now are collectively coming to the realization that yeah, it's going to be a harder economy to make a buck, but we have to face it.' We've seen some underlying strength in the last nine months, but now that they've come to that realization, they're ready to get in the game.

That ain't bad. In our humble forecasting, we've been predicting a gradual decrease in unemployment. Business executives have been reporting to us they feel as though their region is coming out of a slow-growth business environment. It's not rampant optimism, but for the fi rst time in a number of years, executives from every corner of the state are showing more optimism for growth.