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Technology Stocks : Discuss Year 2000 Issues -- Ignore unavailable to you. Want to Upgrade?

To: Bald Eagle who wrote (6521)	7/13/1999 2:41:00 PM
From: Ken	Read Replies (1) \| Respond to of 9818

Beach:<FED RESERVE Warning Letter:.. Prepare for the Worst>> Bald Eagle: I will post other Beach links as soon as i have time to find them. <<http://www.frbsf.org/fiservices/cdc.local/cash/contingency.html But it isn't there now, which may tell you something in itself. My correspondent received the following and verified it before sending it to me. Very similar to the one that I read about 2 weeks ago, but more specific in its recommendations. -------------------------> The Federal Reserve sent a Y2K warning letter to banks on Friday. In that letter they advised banks to: 1. Sell securities - anything maturing after 12/31/99 should be sold. 2. Raise liquidity - call in loans, sell assets, raise and store cash in the bank vault. ( Yes, they said store cash!!! ) 3. Close extended lines of credit - shut off potential drains of capital. Let businesses know now that their may be no liquidity after Y2K. Cut off their lines of credit now. 4. Find collateral to use to raise more cash. ( Including bank real estate, office furniture - anything that can be pledged now to raise cash. ) The Federal Reserve is warning bankers to plan for the worse case Y2K scenario. They say get out of the market now to avoid the turmoil at the beginning of the year. Raise cash now. Sell assets now. My question - if this is good advice for banks, why wouldn't it also be good advice for businesses and individuals? And why are the PR releases from the banking industry so different from the private warnings being issued to the banks? I think it is a positive sign that the Federal Reserve is urging banks to prepare for the worst. ---------------------------------------- I feel like I am writing Ripley's "Believe It Or Not". Peace and love, Bruce Beach survival@webpal.org