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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: David Bogdanoff who wrote (5320)	6/1/1998 6:10:00 PM
From: wooden ships	Read Replies (2) \| Respond to of 42834

In re: "Of course, if even 10% of depositors engaged in such anticipatory behaviour(withdrawal of their funds in cash) it would surely bring our banking system to its knees." Very good point, David, and one raised by the Y2K pessimists. If banks are required to keep only 15% or so cash reserves, anxiety could easily metamorphose to panic as lines of cash demanding customers grow longer at the tellers' windows. Gary North(q.v.) predicts this scenario as unfolding by the middle of A.D. 1999. Of course, if his complete drama runs its course, it is to pondered whether his predicted col- lapse will spare even the cash-rich. As stated prior, I do not know if North will be judged as madman or prophet. Suffice it to say, I would prefer the latter verdict to the former. Howsoever, your advice is well taken and echoes the sage prescription of yore: "An ounce of prevention is worth a pound of cure."