Excerpts on y2k from Mark Skousen's Forecasts & Strategies Dec. '97.
He is a reputable economist and an active voice of reason. He writes a column in Forbes and The Freeman. He has written several books and is a frequent speaker on the financial circuit.
"As longtime subscribers know, I'm not an alarmist. While some investment advisors are always saying the sky is falling, I take what I believe to be a more analytical approach. I've treated the Year 2000 problem this way ever since I first heard that a relatively simple glitch... could cause worldwide havoc.
"According to the New York Times, (Nov. 10, page C-3), half of the nations banks are "halfway" finished... while only5% of major foreign banks are half-compliant! I should add that Japanese banks, strapped for cash, have not even started dealing with the problem.
"What are the chances that banks and other financial institutions will be fully compliant by 2000? They have a decent shot in the U.S., but in foreign lands the chances are slim, and a disastrous chain reaction affecting the U.S. markets is conceivable.
"It's a big problem, and I believe we will need to take precautions as we approach the new millennium.
"Unfortunately, time is running late...."
"While I continue to believe we are not facing a worldwide collapse on Jan. 1, 2000, I am now urging you to take precaution against a moderate level of inconvenience... It's always better to be safe than sorry. Here's what I recommend, starting today:
"(1) Build a cash position... Cash will be king if the computers are down and stores won't take checks or credit cards. Ideally, you should have two to three months' operating expenses in cash in event of a major glitch.
"(2) Buy gold and silver coins. They're cheap right now and should hold their value...
"(3) For now, I am not recommending selling stocks, bonds or other investments....
"We will continue to monitor this "crisis in process." I urge you to search the Web or your local library to get all sides of this issue...." |
