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Technology Stocks : Discuss Year 2000 Issues

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To: C.K. Houston who wrote (4624)	3/13/1999 4:08:00 PM
From: John Mansfield	Read Replies (1) of 9818

y2knewswire.com ' You stated that working people would set aside $1000 for day-to-day cash needs. That's a total of $139 billion in cash withdrawals. You stated that households would cash out 20% of their savings (both savings accounts and mutual fund holdings). That comes to a total withdrawal of $66.6 billion. You said that 30% of companies would reserve a two-week supply of cash to meet the January payroll. That comes to $37.5 billion. You also said that businesses would withdraw 10% of their deposits. That's a total of $310 billion in cash withdrawals. According to your numbers, this will be a total withdrawal of $553.2 billion. You stated that the Fed would bring an additional $200 billion to the banks. This is on top of the existing bank reserves of $49.4 billion. This provides a total cash availability of $249.4 billion. Summary: according to your assumptions, the banks will have a total of $249.4 billion in cash available. Cash withdrawals will be $553.2 billion. Should your scenario come true, the banks will run out of cash. In fact, the banks will be $303.8 billion short of cash. Run the cash computer again

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