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

To: Technologyguy who wrote (7621)	8/2/1999 10:28:00 PM
From: Ken	Read Replies (1) \| Respond to of 9818

Is banking really ok? Look a LOT deeper! << Dr. Roger Ferguson is a member of the Federal Reserve Board. He also heads the Joint Y2K Committee of the Bank for International Settlements. On Y2K, he is the banking world's big kahuna. He speaks of his own "emerging confidence." I have been reading his reports for a year. I do not recall any period of public pessimism on his part. He says the Federal Reserve's mission-critical systems are 100% compliant. Great! Now, what about the 316,682 computers the FED's computers interface? He says that emerging markets still have y2k problems. Indeed, they do, especially if you define an emerging market as Japan, Germany, France, Italy, Spain, Greece, Turkey, and everything south of Texas. We learn the following: The Federal Deposit Insurance Corporation (FDIC) reported last month that 98.3 percent of insured institutions were ready. Odd; I am unable to find such a statement on the FDIC's Website. Here is what I found in its June 3 posting: At present, more than 98 percent of insured institutions are rated "satisfactory" in regard to Y2K preparations. He seems to be suffering from the same problem that the L.A. Times reporter is: y2k dislexia. So, if the code is OK, what's the problem? Why, public confidence. But things will be just fine. Americans are trusting people. There will be no huge bank run, which is why the FED has printed up so much currency -- plenty; more than plenty; billions and billions: This inventory will be more than enough to meet any conceivable demand for cash. Given the high expectation that all normal payments methods will work, we do not expect that there will be any unusual demand for cash, but if there is, we will be ready to meet it. I like that phrase, "any conceivable demand." It reminds of the Wallace Shawn character in The Princess Bride. He is a kidnapper. He and his crew are being pursued by someone who keeps getting closer. Shawn keeps devising new plans for evasion. They don't work. Every time the pursuer gets closer. And every time, Shawn says, "Inconceivable." He calls on bankers in less developed countries to be truthful and reveal everything. That's what he said. I can see the headlines: Central Bankers in 170 Countries Say, "The System Is Not Compliant, and There Is No Way We Can Get Compliant By January." Anyway, what people need is reasonable and responsible reporting, because nobody knows what's going to happen next year. We should all recognize that the Year 2000 event is unique in that we all know that it will occur, but exactly what will occur is uncertain. In this environment, we should listen to the most reasonable and responsible sources. What is reaasonable and responsible reporting? I suppose it's reporting that doesn't go around bringing up the FED's 316,682 data exchanges. This was published by the USIS (July 29), which is the part of foreign information arm of the United States Informatio Agency. * * * * * * * * * Text: U.S. Financial Systems Are Ready for Y2K (Emerging Markets may have some problems) (2970) The Federal Reserve System is ready to meet the challenges that the Year 2000 (Y2K) computer bug may present to the banking sector, says a U.S. central bank governor. "My emerging confidence results from the fact that the Federal Reserve System is fully prepared for the Year 2000; 100 percent of the Federal Reserve mission-critical systems are ready," Federal Reserve Governor Roger Ferguson said July 29 before a George Washington University Y2K conference. . . . However, Ferguson said that some countries might not be as prepared as the United States and that "all countries should hold themselves to the highest standard of self-disclosure, so that financial markets can make fully informed decisions." Emerging market economies may be more prone to "failure due to technical difficulties," he said. "Emerging markets economies that are not making the satisfactory progress should disclose their status and seek assistance... and engage in contingency planning." The lack of preparedness can be even further hampered by lack of infrastructure readiness, such as telecommunications, water and power. Ferguson said that basic infrastructure readiness cannot be taken for granted. Following is the text of Ferguson's remarks as prepared for delivery:

To: Technologyguy who wrote (7621)	8/2/1999 10:29:00 PM
From: Jeff Mizer	Respond to of 9818

>>Last week, Fed Chairman Alan Greenspan said in congressional testimony that banks will be the safest place for people to keep their cash at the end of the year.<< What a surprise- what would you expect them to say ???? JM

To: Technologyguy who wrote (7621)	8/2/1999 10:43:00 PM
From: bearcub	Read Replies (1) \| Respond to of 9818

technoj, if the banks are y2k compliant, then please explain to me why there is already declared a federal banking holiday, a minimum of one week in duration which will put the banks not opening until 1/1l/00 at the earliest, and, why all banks have already secured private security to patrol their premises on 12/31/99 until their services are no longer required, because the bank managers will be leaving all vaults open that night? and, that the Fed Reserve memo ordering securities that can be sold must be sold with maturities after 12/31/99 so that the capital reserve... oh, why do i bother. you aren't smart enough to see beyond boeing's avowals and assertions which make your legal staff stay awake at night in cold sweats. yeah, alan is right on top of it. could it be that he's too old for the job and it is finally becoming obvious to someone besides andrea mitchell?