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

To: Joey Two-Cents who wrote (7240)	7/26/1999 2:16:00 PM
From: Ken	Read Replies (1) \| Respond to of 9818

Joey-does this answer your question?<Burying Your Bank in Debt: New FED Rules detnews.com The Federal Reserve System says it has $150 billion in currency. It does not say in which denominations. It says it plans to print up another $50 billion. Your bank can't get this currency for free. It has to buy it. To buy it, it has to have electronic money. To get electronic money, it must sell assets. To sell assets is to depress markets. Solution: a new loan program. Your bank can borrow money from the FED to buy currency to give to you when you come in to get it -- ten minutes after you read that emergency orders are in effect, closing your bank. (Just joking. Of course you wouldn't wait that long. Would you?) The new program will go into effect on October 1. That's October 1. You know: the day after September 30. You remember September 30. That's the day the U.S. government will be 100% compliant. And your power company. And your stock broker. September 30. The day before October 1. The FED movbed the date from November 1 to October 1. That's October 1. Now say to yourself: "October 1. October 1. I have things to do before October 1." This is from the DETROIT EVENING NEWS (July 21). * * * * * * * * * * * The U.S. Federal Reserve approved a new loan program to ensure banks will be able to get loans if they experience cash shortfalls because of extra demand due to the year 2000 computer problem. The Federal Reserve Board voted 5-0 in an open board meeting to approve the Century Date Change Special Liquidity Facility. The Fed adopted an industry request to accelerate the program's starting date to Oct. 1, from the Nov. 1 start planned when the program was proposed in May. At the same time, the Fed rejected banks' calls for a lower price on the loans. The program is designed to alleviate problems that may arise at the turn of the new century when some computer systems may read a "00" in two-digit date fields as 1900 instead of 2000. If banks run into excess demand for cash from depositors, or some other difficulty, the special loans will be available to provide banks' temporary funding needs.

To: Joey Two-Cents who wrote (7240)	7/27/1999 1:40:00 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 9818

If the U.S. is planning to print $ 250B to handle possible bank withdrawls. What effect would that have on our fractional reserve Joey, That's the tough question and why so many folks are ticked off at the likes of Ken and Co. But then again, since supposedly the majority of nation's wealth apparently is held by the "elite" of America, maybe it won't make much of a difference. Assuming $6-700 billion in cash in circulation and in reserve, that should be enough for everyone to have a couple of grand in cash on hand, just in case. And personally, I'm happy that folks are buying gold/silver coins since if they feel those are a replacement for actual cash, then those cash reserves will go that much farther. But beware of the possibility of a terrible crash in gold after Y2K, should things not be as terrible as some out here predict. There will be a mad rush to RE-CONVERT those coins back into usable cash. Regards, Ron