The current economic crisis will hurt the tech sector far more than the dot-com crash did in 2000

Last week Sun Microsystems recently announced that it will layoff 15-18% if its workforce. The move is expected to save the company $700 million to $800 million. Intel announced its sales for the current quarter could drop 19 percent, and the week before, Cisco Systems announced that sales in its current quarter could drop 10 percent. Circuit City has filed for bankruptcy protection. Best Buy and Nokia are struggling too.

"The tech sector finds itself at the mercy of a double-barreled slump in both corporate and consumer spending caused by the housing decline and the economic crisis on Wall Street. Technology companies are also feeling the effect of frozen credit markets as business and government customers struggle to finance computer and software purchases that can run to millions of dollars," writes Ashlee Vance of the New York Times.

Some, like Ashok Kumar, an analyst with Collins Stewart think that this could be worse than when the dot com bubble burst in 2000. “Even during the 2000 bust, the decline was more measured,” he said. “This seems to be going into a free fall