Economics may not be the favorite subject of most techies, but it is an important one. Especially after the up-and-down series of events that have transpired in the markets this week. Two of the last four independent investment banks are gone. The world's largest insurer is now a government entity. The stock market has simultaneously suffered its largest one-day loss and its largest one-day gain in the last six years. Not even the tech industry is immune to the insanity that has occurred this week. Here are just a few of the effects the Wall Street meltdown will have on the tech industry:

1) A loss of large technology buyers

Businessweek's Heather Green outlines it simply enough. Some of the biggest spenders of technology are financial institutions. Blackberries, servers, software. They will all take a hit without Lehman and Merrill Lynch buying technology and the possible acquisitions of

Washington Mutual and Morgan Stanley. With the financial firms consolidating and shrinking, there will simply be less buyers available for software, computers, web services, servers, and mobile phones. And make no mistake - the effect will be felt throughout the technology industry.

2) Money's going to be tighter at the big tech companies

A huge chunk of hardware and software purchased from companies like Dell, IBM, and Microsoft comes from loans. Essentially, they loan companies the money needed to buy their products. Now with financial companies cash-strapped, these loans have only increased. The Dells and HPs of the industry run a huge risk of their purchasers defaulting on their loans. This is no small matter. These loans add up to be billions of dollars each year. Whether or not companies should take on this risk during a credit crunch isn't the only issue. The pinch companies will feel in defaults and increased loans will likely eat into budgets, share prices, and salaries.

3) Tech companies will have fewer underwriters for their IPOs

Issue: IPOs are complex events that require investment banks to underwrite the process. Problem: We've lost two investment banks in the last week with another in jeopardy.

The first thing most companies do when they want to go public is hire an investment bank. Now the number of options available has dropped significantly. Lehman Brothers was a major underwriter of IPOs before its collapse. Companies with Lehman Brothers now are probably scrambling to figure out their options.

When all is said and done, Goldman Sachs is likely to be the only independent investment bank left standing. That's quite a difference from a year ago, and that (along with the bear market) will hurt the number of IPOs that occur and change the players involved.

4) A weaker merger, acquisition, and IPO market

The market for technology start-ups to be acquired was already weaker than a year ago. With investors having the jitters, credit tightening, and cash becoming more scarce, the future of the M&A and IPO market is uncertain. I can't predict what will happen overall - my guess is that cash-rich companies such as Google will be able to buy companies at a premium - but what is certain is that the numbers show that the number of mergers, acquisitions, and IPOs in the technology sector has dropped in the last year. It will probably not recover until the market itself recovers.

5) It's cheaper to start a tech start-up, so expect more of them

You didn't think it was all bad, did you? As housing prices and property values plummet, rent drops as well. Great talent is also readily available as they no longer have skyrocketing stock options to entice them to stay. Bear markets are a time when many people take the risk of starting their own company. Start-ups are the fuel that drive the tech industry. Like I said, it's not all bad.

6) Tech Shares are in for a bumpy ride

As the market continues to correct itself and financial firms grow and collapse, tech stocks are going to ride the ups and downs. Apple shed nearly 20% of its market value before its stock bounced back. That type of volatility happens in the markets, but usually not in the span of four days. If you're a shareholder or if you're an employee with options at a tech company, brace yourself for several rounds of extreme price fluctuation.

It's important to know what's going on in the markets, especially if you have investments. Markets are self-healing entities that find a way to get back on their feet. It's important not to panic when markets go down. However, given the events of the last week, being apprehensive may simply be smart economics.