Of course, there was always the possibility of banks using this scheme to evergreen, so we have monitored how it works in practice, and continue tweaking the scheme where necessary so that it achieves its objectives.
In short, a major shift in management expectations about the profit potential of new investments, particularly high-tech investments, is key to explaining the investment bust of 2000-02. A Capital Overhang? The factors just discussed, including the re-evaluation of the long-term profitability of high-tech investments, go a long way toward explaining the decline in investment spending that began in the latter part of 2000.