I caught a technology sector analyst from Invesco on Yahoo's Tech Ticker this morning who had some interesting things to say about the dysfunctional relationship between the technology stock sector and the subcrime . . . err . . . subprime credit debacle.

It seems that the credit & lending downturn has finally caught up with technology companies. Says Yahoo, in teeing up the segment "For much of 2007, technology stocks outperformed as the sector was perceived to be largely immune to the housing downturn and the resulting unrest in the credit markets. The past few months have seen a sea change in that view: Technology stocks have been among the hardes hit in recent months as the subprime crisis filters out to all aspects of the global economy."

Diane Garnick, an investment strategist at Invesco, appearing on Tech Ticker, told viewers that tech stocks are not immune to the subprime crisis because of its impact on the global economy and the inability of both corporations and consumers to borrow and spend.

"It's not long-term loans or big credit issues that's hurting tech companies," she said. "It's more of a commercial paper issue. Tech companies can't get the credit they need to make business investments over the short term." This, in turn, creates a domino effect where technology companies devote less revenues to research, hiring, and overall spending.

"That creates a ripple effect in the economy where other companies and eventually, consumers recognize a slowdown and pull back on their own spending habits. Sooner or later, nobody is spending enough money to keep the tech industry rolling."

Garnick says that, like a flu having to run its course, bank and lending debt will have to work its way through the system before things get better.

Just another reason why 2008 is shaping up to be a tough year.