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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Joan Osland Graffius who wrote (10655)	11/30/1997 11:13:00 PM
From: Hawkmoon	Respond to of 94695

Primarily gov't, but Tony Keyes (http://www.y2kinvestor.com) has a local radio program here and has commented on many CIO's having their heads in the proverbial sand over the problem. SFAS-5 (Statement of Financial Accounting Standards) Accounting for Contingencies, provided under GAAP calls for contingencies that are reasonably possible (the year 2000 is inevitable) must be accounted in a note to the company's financials. The SEC has been lenient up to now since they know the market is fragile, but as 1998 grows old and the number of company's facing the likelihood of y2k vulnerability to opertions, and thus the bottom-line, they will grow more stringent. If you become familiar with the problem, you will see what the potential REAL problem is, as well as the likely far more serious psychological impacts are as people start taking money out of the banks not knowing what their account balances will be on 1 Jan, 2000. It only takes a couple of substantial depositors from every 100 (ie: 2 out of 100) withdrawing their CASH from a bank for them to be in serious fiscal straits. I see far more than 2% doing so, to include myself....:0) Gartner Group says, based on $1 per line of code remediated, the cost will be $600 Billion worldwide. However, the belief is that by late 1998-1999, the cost per line will likely be $2-3+ per line of code so double or triple the potential market. However, since no one has a precedent for this, no one really knows what the cost will be. But one thing is sure, it will be a severe chunk of money not being spent on what they spent it on last year... :0( Regards, Ron