Look at growth, look at how much time people spend on the Net and look at the variety of things that they are doing. It's all really good, so I am actually encouraged by the fundamentals that underlie usage growth on the Net.

You know, in a workplace, when you shrink the size of a workforce, there is pain there. But there is no question: we have a government that we can no longer afford.That is the cold, hard fact. So we have to make this more efficient. We have to sunset programs that no longer work. We have to eliminate waste and fraud. We must do this.

People ask me, how is managing in the New Economy different from managing in the Old Economy? Actually, it's a lot the same. It's about the financial discipline of the bottom line, understanding your customers, segmenting your customers by their needs, and building a world-class management team.

The fact that used cars is our largest category is a good example. We would not have sat in a conference room and said, "Hey, how about used cars?" So what can be learned that is extensible to other companies is to ask what are your customers doing with your products that maybe you didn't anticipate that they would do? How do you think of your customers as your research and development lab, as opposed to having an R&D lab at headquarters?

We can put our head in the sand and continue to lose jobs overseas and to other states, or we can say, 'You know what? We are not going to lose another job from California, and we're going to be the very best place to start and grow a business.' So I'll be the chief sales officer for California businesses.

Sometimes it's a little bit like being a politician. We have work to do in understanding our users sentiments.

eBay had two main things that really spoke to me. It enabled individuals to do things that they could not have done without the Web. The second thing was what Pierre said: "People have met their best friends on eBay. What this has enabled is truly online community."