The Silicon Valley Phenomenon

I'm still seeing mixed forecasts for the year to come...anywhere from predictions of a full blown recession to the opinions of Alan Nevin, chief economist for the California Building Industry Association, who expects the construction of new homes to increase slightly this year, and says "The economic basics of the state remain strong." But even he hedges his bets. He called the foreclosure rate in California a short term phenomenon that isn't as severe as in many other states, but he said that if consumer confidence worsens and interest rates rise substantially "that would put a damper on my cautious optimism."
Maybe I'm being a Pollyanna, but I prefer this quote from Paul Erdman: " Silicon Valley is the economic engine that drives California...and California is the engine that drives America, and America is the engine that drives the world! I've always admired the late economist, Joseph Schumpeter, and he said, "You create wealth by combining three things: Technological Innovation, Venture Capital, and Entrepreneurship. Well, Silicon Valley is the classic example of that. It all starts right there!"