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Technology Stocks : 2000: Y2K Civilized Discussion

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To: flatsville who wrote (318)8/17/1999 12:21:00 PM
From: NickSE  Read Replies (3) of 662
 
ANALYSIS-Y2K fears seep into world markets at last
biz.yahoo.com

LONDON, Aug 17 (Reuters) - A slew of financial market distortions and anomalies in recent weeks have at last provided hard evidence that international investors are moving to price in the risks surrounding the Y2K problem.

Years of hand-wringing by pundits and politicians about millennium computer problems have until recently caused only slight and arcane moves in market prices.

But recent sharp increases in bond market credit spreads, a fresh selloff in emerging markets and the gloomy interest rate horizon implied by short-term futures market have all been at least partly spurred by the Y2K effect, analysts said.

``There is an avoidance of risk and a preference for liquidity,' said Giles Keating, Credit Suisse First Boston chief economist.

[...]
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