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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (32821)	10/15/1999 4:09:00 PM
From: William Griffin	Read Replies (1) \| Respond to of 70976

Better to have paranoia now rather then later??? WASHINGTON -- Federal Reserve Chairman Alan Greenspan reiterated that an outbreak of year-2000 paranoia in the American public could hurt the economy more than potential computer failures. At a conference organized by the Italian-American Congressional delegation, Mr. Greenspan said U.S. companies have done such a good job to rid their computers of the programming flaw known as the Y2K bug that "the probability of cascading of computer failures in mission-critical systems is now negligible." But he said that doesn't ensure Jan. 1 will be an ordinary day. "The potentially most important piece in the Y2K puzzle for the rest of the year is the uncertain response of the American consumer as the year-end approaches," Mr. Greenspan said in prepared remarks. The comments came a day after Mr. Greenspan rattled global financial markets by suggesting that investors may be underestimating the risks of investing in stocks (see article). In his remarks Friday, Mr. Greenspan stayed clear of topics such as U.S. monetary policy or the stock market. Mr. Greenspan said that although most Americans aren't panicking about the possibility of year-2000 financial disruptions, a few of them clearly are unnerved. "A small number of households, driven by the fear of the unknown, tell pollsters that they are planning to build large stockpiles of food, water, fuel and cash as the millennium approaches," he said. Such fears could intensify in the next two months. "We have not yet reached the period of extra-heavy focus by the media" on the century-date change, Mr. Greenspan said. "It is too compelling a story for audiences that thrive on countdowns to the unknown." Greenspan Frets That Y2K Fears May Be Bigger Snag to Economy (Sept. 20) "As attention heightens and rumors inevitably mushroom, it is important that what is known and what is not known be clearly articulated by those of us in both public and private leadership positions in Y2K-management," he said. "In the final analysis, facts are the only antidotes for rumors." In any case, he said the Fed will be prepared. The central bank has made plans to make additional currency available to banks if they experience heavy cash withdrawals by their customers. Still, he said, "I trust that such withdrawals will be modest since, as I have said before, the safest thing for consumers to do with their money around year-end is to leave it where it is."