Y2K (Year 2000): Is Wall Street & Banking Vulnerable? Message Board

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Technology Stocks : Y2K (Year 2000): Is Wall Street & Banking Vulnerable?

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To: flatsville who wrote (83)	8/9/1999 10:43:00 AM
From: C.K. Houston	Read Replies (1) of 158

Flattsville - Too bad we didn't short the banks when I first suggested it 3 weeks ago, huh? Y2K Jitters Are Finally Starting to Register on Wall St. Stocks are sinking, interest rates are rising, oil is nearing $21 a barrel and the dollar is suddenly the planet's wimp currency ... If you're Greenspan, then, do you raise rates just a quarter-point on Aug. 24--or go for a half-point increase to try to front-run the economy and inflation and avoid having to move again before Jan. 1? The Fed's decision-making is further complicated by concerns that the economy could accelerate in the fourth quarter precisely because of Y2K worries. How so? A new report from brokerage Goldman, Sachs & Co. predicts there will be enough stockpiling of goods by companies and consumers in the fourth quarter to have a "noticeable" effect on economic growth. That poses a challenge for the Fed, because if stockpiling helps boost prices of goods--driving the inflation rate higher--bond investors could demand ever-higher yields to compensate. They would also expect to see the Fed engaged in the anti-inflation fight by tightening credit, which Greenspan might be reluctant to do for the aforementioned reasons. latimes.com Cheryl

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