2000 Date-Change Problem: Scam, Hype, Hoax, Fraud Message Board

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Technology Stocks : 2000 Date-Change Problem: Scam, Hype, Hoax, Fraud

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To: Pierre Mondieu who wrote (938)	12/10/1998 12:43:00 PM
From: Bill Ounce	Read Replies (2) of 1361

Business Week -- Y2K IS WORSE THAN ANYONE THOUGHT businessweek.com People have been sounding the alarm about the costs of the millennium bug--the software glitch that could paralyze computers come Jan. 1, 2000--for a couple of years. Now, the hard numbers are coming in and, if the pattern holds, they point to an even larger bill than many feared just a few months ago. In the third quarter, the Securities & Exchange Commission for the first time urged companies to disclose what it will cost them to head off the bug. The disturbing news: Many now plan to spend, on average, about 26% more than they thought just months ago. AT&T, for example, had said in early 1997 that it might shell out $300 million. Now, it says it could spend $900 million before Jan. 1, 2000--some $186 million of that in this year's fourth quarter alone. Chase Manhattan Corp. says it will spend $363 million, up 21% from its $300 million second-quarter estimate. And Aetna Inc. is blaming fatter-than-expected Y2K bills--$195 million instead of the $139 million forecasted last summer--for a 6.1% drop in third-quarter profits. Even states are feeling sticker shock: Illinois officials say fixing bugs in the state bureaucracy will cost $114.4 million--up 65% from 1997 estimates. Outspoken Y2K-watcher Edward E. Yardeni, chief economist at Deutsche Bank Securities Inc., says the numbers show that some organizations are ''just starting'' to wake up to Y2K's potential for damage--but he believes the possible impact is enormous. In fact, Yardeni puts the chances of a recession in 2000 or 2001 at 70% because of ''a glitch in the flow of information.'' [...]

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