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To: Tim McCormick who wrote (80804)	12/22/1999 11:48:00 AM
From: clochard	Respond to of 86076

I don't know why the Fed is afraid of Y2K. Having worked on a few Y2K remediation projects I can say that its a simple matter to test for readiness and any company that has problems should fire their CIO for negligence. Anyway, it will all be over soon so everybody can behave like mature, normal adults again :) P.S. here is the first (I think a second is already done) Wednesday December 22, 11:42 am Eastern Time Alert: Fed Says Adding $885 Mln of Reserves Via Wednesday's Coupon Pass (options, currency)

To: Tim McCormick who wrote (80804)	12/22/1999 11:52:00 AM
From: Ken98	Respond to of 86076

Tim, from Northern Trust: <<But I still have problems relating the surge in bank credit - loans and investments at banks - to Y2K. As the chart below shows, in the past four weeks, bank credit growth has skyrocketed to an annualized rate of 21.2% -- the fastest since October-November of last year when the money and capital markets seized up. But those markets are running free like the drain in my sink after a visit by the plumber. Corporations are not having any problems raising funds in either the commercial paper market or the bond market. And, if they don't have any current earnings or prospects for earnings in the foreseeable future, corporations are not having any problems raising funds in the equity markets. Yet, commercial and industrial loans have shot up at banks. So have real estate loans. Are homebuyers trying to get in before the New Year for fear the banks won't be open to make them a loan on their new mansion? And just ordinary consumers have stepped up their borrowing from banks of late. Are they stashing borrowed money in their Y2K bunkers? Mighty expensive "rations" if they are. And lending related to securities transactions also have erupted. I wonder if this is more related to IPO activity than Y2K activity. No, Y2K just doesn't wash with me as an explanation for the explosion in bank credit. Maybe it's global warming that is the culprit.>> ntrs.com [the Bezos article]