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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: kfdkfd who wrote (12554)	8/2/1998 9:23:00 AM
From: ctirry	Respond to of 13949

The lead editorial of today's (Sunday's) NY Times is on y2k and how this problem is not being adequetaly addressed. The Millennium Bug Looms ear of chaos in the world's computer systems in the year 2000 may be hard for most people to take seriously. The temptation is to assume that since technicians created the problem, technicians can solve it. But with only 516 days until the fateful turnover, it is clear that the United States is not moving fast enough to fix its computers or prepare for significant disruptions. Instead of addressing a potential crisis, many leaders in business and government are complacent, declining to act for fear of lawsuits or engaging in political fights. Their lack of attention could be crippling. The so-called millennium bug arises from chips and software coded to mark the years with only two digits. If not adjusted by Jan. 1, 2000, myriad systems will "roll over like the odometer on an old Chevy," as Wired magazine put it, effectively thinking they had just jumped back to the year 1900. No one is sure what will happen. The breakdowns could be minor, or they could disable everything from air traffic control systems to financial networks, power grids, hospitals and home appliances. Some economists warn of a global recession. It makes sense to prepare for the worst. The Federal Government has made progress but is far behind in upgrading air traffic systems, Medicare, the Pentagon and other sectors. In addition, a petty budget dispute between the House and Senate has blocked $3 billion in emergency funds to speed up the process. A major problem is that even if the Federal Government is in perfect shape, its systems could become impaired by interacting with state and local governments, where potential problems are rampant. Similarly, big businesses could fix their own systems only to have them break down by contact with noncompliant customers, clients and suppliers at home and overseas. The Securities and Exchange Commission is actively monitoring efforts to root out problems throughout the financial industry, but much more needs to be done. President Clinton has belatedly stepped up the Federal campaign to increase public awareness by establishing a Council on Year 2000 Conversion, but he and Al Gore, the First Technophile, should do even more. They and sympathetic members of Congress should win passage of legislation to encourage companies to share information with one another, disclose problems to the public and move more aggressively to correct them. At present, many businesses are afraid to act out of fear that any corrective efforts that fell short would simply invite lawsuits charging that they knew their systems were flawed. If the millennium bug problem were simply a matter of software, it would be bad enough. But experts say the most dangerous aspect of the problem is that so many systems -- from missiles to natural-gas pipelines to hospital equipment -- rely on billions of tiny chips embedded where they would have to be found by engineers and reprogrammed or replaced. Congress should consider tax incentives or subsidies to encourage businesses to identify vulnerabilities and recruit professionals, including retired people. It may well be that all these problems can be managed. But experts recommend that employees ask their bosses about what is being done to get ready. If the answer is that there is nothing to worry about, it is time to start worrying. It will cost billions to fix potential problems. But that is nothing compared to what it will cost if the fears of many experts prove correct. It is a bit of a paradox that as more and more concern about is expressed in the media and Congress the stock of y2k companies goes lower! IMO this is about to change.