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


To: JDN who wrote (13183)11/6/1998 10:31:00 PM
From: SOROS  Respond to of 13949
 
From: "John K. Whitley"

Subject: Y2K - THE STORM IS SIGHTED AT LAST...

From: "John K. Whitley"

This is a NEW WORLD ORDER INTELLIGENCE UPDATE Y2K Alert.....

Some interesting contradictions are beginning to emerge as the potential impact of Y2K begins to sink into the public
conciousness.

Canadians, generally aware of the coming millenium bug, seem to think that the
Americans
will fix it for them, if their own big businessmen and federal government fail at the job.

The Americans won't be fixing it, however, as they don't have enough time left to do so and are busy blaming the
Europeans
for the chaos-to-come instead.

Meanwhile, over in "European" Russia, the Communist Party is whipping itself into one of its periodic frenzies of
anti- Semitism
[guess who
they'll
be blaming when the global financial system goes down!].

And, once again, back in North America, those inconvenient
Christians
are starting to get the blame for trying to wake their fellow-citizens up through networked TV shows like "700 Club" or "100 Huntley
Street" [which reach millions of viewers] and for "food-hoarding" [read "sensible preparation"].

While everyone's blaming everyone else, we advise our readers to seize the opportunity to get ready - the Y2K locomotive is running
at full speed, no one is at the controls, half of the the crew is asleep and the others are about to break out into a brawl. While
they're distracted, you should be heading to the food and hardware stores!

Stories below.

On an administrative note, we intend to shift our multi-segmented global Y2K/NWO mailing list to a different mailing program this
weekend, thus helping to preserve subscriber privacy and eliminating the long list of e-mail addresses which currently precedes
each message. Bear with us while we make that change. ____________________________________

"The Yanks will fix it...is there any hockey on TV tonight?"

OTTAWA CITZEN Sunday, 1 November 1998

MILLENIUM BUG: PEACE OR PANIC?

Canadians dismissY2K warnings

Chris Cobb The Ottawa Citizen

Canadians refuse to fret about the millennium bug and dismiss doomsday warnings that the first day of January 2000 will signal the
end of the world as we know it.

A newly released poll commissioned by Industry Canada reveals that more than three out of four Canadians have heard of the
millennium bug but most consider it harmless. It is the first poll to test public awareness and attitudes about the potential problem.

Surprisingly, more than 80 per cent of Canadians have full confidence that neither the federal government nor business will have
much difficulty finding the cure for what ails us if the millennium bug does prove to be bothersome.

The bug is the result of computer experts programming with two digits for the year rather than four. When 2000 arrives, doomsayers
warn that computers not adjusted could malfunction or shut down altogether. Because the digits 1-9 were omitted by programmers,
computers might decide 2000 is actually 1900 -- or 1800. Nobody quite knows.

Only five per cent of Canadians polled predicted a crisis and only 18 per cent feel the bug will create any serious problems. Sixty
per cent said they agreed with the statement that the bug "will create some problems but nothing that can't be fixed." In the "crisis?
what crisis?" corner, 12 per cent anticipate no problems at all.

The poll of 2,000 Canadians, conducted by survey firm Decima, is considered accurate plus or minus 2.8 per cent 19 times out of
20.

Peter de Jager, a Canadian computer consultant who makes a living from advising government and business how to cure the
millennium bug, says Canadians may be in for a shock but says it's good we aren't taking survivalist courses, rushing into the
woods and building huts in anticipation of widespread civil unrest.

"Canadians are a bit too complacent," he said. "They shouldn't assume that everything is going to be taken care of. Will it be the
end of the world? Should be people head for the hills? No. But every Canadian will be affected."

At the very least, said Mr. de Jager, government will grind more slowly -- including slower delivery of cheques from government.

University of Toronto social psychologist John Bassili said just because the vast majority of Canadians have heard of the millennium
bug doesn't mean they understand it.

"Even Phd's around here think the problem can be solved with a simplesoftware patch," he said, "but apparently it can't. People tend
to be in awe of computers and the skill of people who can make them sing. They have impressed us, so we trust them. The notion
that computers will crash and cause social unrest is beyond the comprehension of most people."

Another reason for the lack of concern is human memory, Mr. Bassili added.

"There was a world without computers a very short time ago," he said, "and many people remember that we got along just fine
without them. So naturally they think we can get along just fine without them again. Maybe it's an illusion, who knows?

"And people know they can't do anything about it," said Mr. Bassili, "so there's a feeling of powerlessness. There's no personal
control like there is with something like quitting smoking or reducing cholesterol levels."

Doug Drever, communications chief for Industry Canada's Year 2000 Secretariat, said Canadians are right to feel confident in
government and business.

"There's a lot of work still to be done." he said, "but government has many programs to help business. Canadians are confident the
millennium bug will cause few problems. They aren't being complacent or overly optimistic."

Asked about published reports that the military and RCMP are making plans to cope with possible civil unrest caused by the
millennium bug Mr. Drever said they are just being "prudent." ______________

Wasn't that just "snuggly"? Canadians have fixed the problem ahead of the rest of the world with a skilful
opinion survey
which declares it to be -
no problem
!

Meanwhile, the RCMP and provincial police forces are moving their families into guarded compounds, the Canadian Armed forces
are deloying en masse across the country....well, you get the picture. The population snoozes and the authorities "prudently"
mobilize for war!

As in...

DON'T BOOK 2000 HOLIDAY, SOLDIERS TOLD

Bill Mah Edmonton Journal Staff Writer, November 5th 1998

Sherwood Park - When Edmonton's soldiers ring in the year 2000, they likely won't be doing it in a faraway holiday resort.

The army is asking its 11,000 troops in Western Canada not to plunk down money for any vacations starting Dec. 27, 1999, in case
they're called out to cope with the potential havoc of the millennium bug.

"We've sent out a message to all members of Land Force Western Area advising them not to make financial commitments for
Christmas plans or New Year's plans next year," said army spokesperson Major Doug Martin.

If leaves are cancelled in 14 months, the advance notice will save the military from paying any claims for compensation filed over
ruined vacation plans, he said.

The order was issued recently by acting Chief of Staff Lt.-Col Ron Curry.

It affects all army units between Vancouver Island and Thunder Bay [Ontario].

Ottawa has ordered the Canadian Armed Forces to prepare for the biggest peacetime deployment of troops to handle the fallout of
any computer failures that could shut down power, heat and telecommunications when 1999 turns into 2000.

Last week, the Edmonton Police Service cancelled time off for its 1,400 members between Dec. 28, 1999, and March 31, 2000. The
RCMP earlier issued a similar ban. ____________________________

Meanwhile, things don't look too good for Europeans, according to this Reuters report...

Tuesday November 3 3:05 PM EDT

EUROPE FACES EARLY HIT FROM COMPUTER BUG

By Neil Winton, Science and Technology Correspondent

CANNES, France (Reuters) - European governments are failing to protect their citizens against fallout from the millennium computer
bomb, and the consequences of their inaction are likely to start at the end of this year in hospitals and welfare systems, a
conference was told today.

''European governments and public sector organizations have only spent between five and 10 percent of what it needs to fix their
systems,'' Gartner Group analyst Andy Kyte told a press briefing.

The governments of the Netherlands, Sweden and Ireland escaped censure from U.S. research organization Gartner. The U. S.
government's actions have also failed to impress Gartner.

According to Kyte, European governments are dependent on large scale computer systems to dispense welfare and run public
institutions.

''The public sector is the biggest danger here. They're not doing the work at all,'' he told Reuters.

Kyte was speaking at Gartner's annual European conference, called Symposium ITxpo98.

Experts believe that many computers may crash at midnight on December 31, 1999 because they use double digit dates like 97
and 88. Computers controlling operations like payroll or pensions may die or spew out erroneous data when faced with the double
zeros of year 2000.

Businesses and latterly, governments around the world, have been cranking up efforts to solve the problem before time runs out.

But Kyte explained that many computer systems which deal with dates often run operations where they need to refer 12 months
ahead. This means that many computers will start to fail on December 31, 1998.

''The millennium computer problem is going to start manifesting itself as we cross into 1999. There will also be clusters of problems
at key dates like the end of the first quarter,'' another Gartner analyst, Matthew Hotle, told the briefing.

Kyte said European governments were saying plenty but doing little.

''Hospitals, government procurement, defense procurement, welfare, are areas where we'll see disruption from the end of this year.
The Dutch, Swedes and the Irish have done a good job, but very few European governments can stand up to scrutiny. They've been
saying a lot but not really doing much,'' Kyte said.

''The federal government in the U.S. has not done a great job either, but at least it has been open about it,'' he said.
_______________________

Well, that was encouraging! Nothing like some frank speaking, mutual recrimination, and the confession that we're all going to be in
this mess together to persuade people that "I'd better blame HIM before he blames ME!"

Meanwhile, reality keeps seeping in around the edges of all of the comforting nostrums blowing down from Canada.....

YEAR 2000, EMU CLOUD TECHNOLOGY FIRMS' FUTURE

By Neil Winton, Science and Technology Correspondent

CANNES, France (Reuters) - Information technology companies can expect a golden future but first they must negotiate minefields
presented by European monetary union and the millennium computer bomb, the Gartner Group told a conference.

''Year 2000 and EMU phenomena will cause massive enterprise (business) disruption and dislocation,'' Gartner analyst Peter
Sondergaard said in a presentation.

The information technology business worldwide also faces a chronic labor shortage, according to Gartner.

''The shortage of IT skills remains the number one management issue beyond 2001,'' Sondergaard told Gartner's annual
Symposium/ITxpo conference.

Gartner analyst Nick Jones said companies which responsibly had taken care of their own possible millennium computer problems
might be brought down by suppliers or customers with flawed systems.

''(Y2K (year 2000) compliance is not just your own problem. You are vulnerable to the weakest link in your supply chain,'' Jones
said.

Some computers programmed to denote the year in double digits - like 87 or 98, will crash when presented with 2000. Gartner has
been a high profile proselytizer for action to combat the problem, and famously said it would cost between $300 billion and $600
billion to solve the problem worldwide.

On top of the millennium bug, Jones claimed that the introduction of the Euro will cause chaos across Europe.

Transactions between businesses denominated in the Euro begin on January 1, 1999 - a huge task for companies that must change
accounting and sales systems.

''Most businesses in Europe haven't yet looked at the implications of the Euro,'' Jones said.

In a speech to the conference, Gartner chief executive officer designate Bill Clifford said businesses globally are cranking up
spending to defuse the millennium bomb.

''Y2K spending was five percent of IT budgets in 1997, has risen to 21 percent in 1998, and will hit 44 percent in 1999,'' Clifford said.
It's the number one item, ahead of everything else. It's the main issue of today and tomorrow. There are 424 days to go,'' he said.

Gartner's Sondergaard said in his presentation that worldwide, state and local governments are most at risk from year 2000
problems because they reacted too late, have not arranged adequate funding, and are chronically understaffed.

This hiring problem will be a long-term one for the industry generally.

''Through 2003, the effective unemployment rate in the IT industry will be substantially negative globally; for every 10 full-time hires
required, only 7.5 IT professionals will be available,'' Sondergaard said.

Sondergaard said the Internet is allowing companies around the world to find buyers that five years ago were unreachable. This has
been led by publishing and financial services companies. Health care and retail are next in line.

According to Gartner, if these difficulties can be overcome the future is bright for information technology companies....
__________________________

And the truth seems to be filtering around the edges of official platitudes in Britain, too...

London INDEPENDENT, 5th November 1998

Troops on stand-by for 2000 bug chaos

Troops could be brought in to deal with civil emergencies caused by computers which crash because of the "millennium bug", it
emerged yesterday in a leaked cabinet letter.

Donald Dewar, Secretary of State for Scotland, warned George Robertson, the Defence Secretary, in the leaked letter that planned
cuts in the Territorial Army could leave the country unprepared for major civil emergencies at a time when the millennium bug poses
a potential threat to key services.

Ministers played down the threat of civil emergencies, and Downing Street was furious with Mr Dewar for using the millennium bug
as leverage for more money to protect the TA in Scotland. The Prime Minister's spokesman denied any knowledge of contingency
plans to bring in troops to cope with potential disasters.

The leak raised the seriousness of the threat facing the UK if computers regulating everything from traffic lights to air traffic control
fail to cope with the double-zero at the change-over of the millennium.

The bug could also blow a hole in the Chancellor's optimistic forecasts for growth in the British economy, according to Gordon
Brown's pre-Budget report. It says output will be hit by the 2000 changeover date.

"Some loss of output immediately following the date change seems likely," the report warns.

"Irrespective of how well preparations are proceeding in this country, the economy will remain vulnerable to disruptions in other
economies."

However, the Treasury said because of the "wide margins of error, Year 2000 effects are excluded from the pre-Budget report
forecast".

The report says the millennium bug poses "a significant global economic and governmental challenge", and outside estimates of the
cost of dealing with it range from £25bn to £60bn over several years.

John Redwood, Tory trade and industry spokesman, said: "It shows that the Chancellor's figures for growth are a fantasy."

Mr Redwood last night challenged Peter Mandelson, Secretary of State for Trade and Industry, to give reassurances about safety.
"The Government has assured us it is in control of the millennium bug problem. Fears are now growing that this is no longer the
case."

The Government has set up a Year 2000 agency with a ministerial task force under Margaret Beckett, the Leader of the House, who
will report to the Commons next month on the progress.

Tony Blair has made action on the millennium bug a government priority, and another body, Year 2000, was given the job of
co-ordinating action in the private sector to deal with computer crashes. But there has been criticism that too little progress is being
made.

Hospitals were told to pay for their own computer checks, and the Commons Public Accounts Committee, a spending watchdog,
said earlier this year it was "appalled" at the delay in action in the health service where the failure of diagnostic and treatment
services "could have serious consequences for patients".

In the leaked letter to the Secretary of State for Defence, Mr Dewar said: "The detailed proposals lead me to conclude that TA ability
to respond and support local communities in the event of a major civil incident will be severely affected and indeed will all but
disappear north of Inverness.

"This could well lay the Government open to criticism over a reduction of emergency preparedness at a time when millennium bug
problems pose a potential threat to key services such as electricity and telecommunications and when, therefore, emergency
preparedness should, if anything, be enhanced."

Alex Salmond, the SNP leader, claimed there was "open warfare" in the Cabinet over the cuts. "In his frustration at being bypassed
by London, Donald Dewar appears now to have been forced into making the proposed Scottish TA cuts a resignation issue," he
said.

But Helen Liddell, Mr Dewar's deputy at the Scottish Office, dismissed Mr Salmond's allegations as "hysterical hype" and said
allegations that Mr Dewar may resign over the planned cuts were "preposterous".

She added: "Mr Dewar, in his role as the Scottish Secretary, is fighting the Scottish corner within the Cabinet like all departments
do."

- - - - - - - - - - - - - - - - - - - - - - -

In a rare display of journalistic unanimity, the DAILY TELEGRAPH, the GUARDIAN, THE SCOTSMAN and THE TIMES carry the
same story in today's editions, an indication perhaps that they are now recognizing the magnitude of Y2K as possibly
the
major on-going news story of next year.

Just wait until their readers come to the same conclusion....!

DAILY TELEGRAPH 5th Nov

Thursday 5 November 1998

MINISTERS FEAR MILLENIUM CHAOS By Robert Shrimsley, Chief Political Correspondent

PRIVATE government fears that the Millennium bug could create widespread civil emergencies by disrupting key services such as
electricity and telecommunications have been revealed for the first time in a confidential Cabinet memo.

The possibility of calling in troops to help communities that lose power and essential utilities as a result of computer malfunction at
the beginning of 2000 is also suggested in the leaked letter.

Donald Dewar, the Scottish Secretary, writing eight weeks ago to George Robertson, the Defence Secretary, raised the prospect as
part of his campaign to resist severe cuts in Scotland's Territorial Army. Mr Dewar argued that this could not come at a worse time
because the cuts, from 7,000 to 4,000, could severely hamper Scotland's ability to cope with a serious civil emergency.

He wrote: "This could well leave the Government open to criticism over a reduction of emergency preparedness at a time when
Millennium bug problems pose a potential threat to key services such as electricity and telecommunications and when, therefore,
emergency preparedness should if anything be enhanced."

Mr Dewar's comments caused an immediate controversy, with opposition parties and technology experts saying that they revealed
a far more worrying state of affairs than ministers had previously conceded.

The memo was leaked to the Scottish National Party, whose leader, Alex Salmond, yesterday demanded an emergency Commons
statement on Mr Dewar's fears for vital services.

Robin Guenier, former head of the Government's Action 2000 unit, said Mr Dewar's letter was the first time private Cabinet concerns
had become public. He criticised ministers for trying to play down the risks posed by the bug. He said: "There is a problem in the
Cabinet. The view among some in government is that we should try to keep some of these fears under wraps in case people panic."

Yesterday, Mr Guenier met Margaret Beckett, who chairs the Cabinet committee on the bug, to emphasise the need for the
Government to do more. Tories also echoed the concerns, demanding urgent answers from Peter Mandelson, the Trade and
Industry Secretary.

John Redwood, the Tory spokesman, tabled a series of parliamentary questions to Mr Mandelson asking about the readiness of all
major public services for 2000. He said: "Labour has previously assured us that they were in control of the Millennium bug problem.
Fears are now growing that this is no longer the case. The Government must provide answers to these key questions that
potentially affect the livelihood and security of everyone in Britain."

Whitehall sources said yesterday that there had now been numerous meetings among ministers about the situation. The Ministry of
Defence confirmed that it had been talking to departments and agencies about the use of troops in emergencies.

British Telecom has committed £350 million to upgrading all its systems in time for the date change. Yesterday the Electricity
Association, which represents the industry, said it had "moved on to the final stages of work" and remained committed to ensuring
no material disruption.

The threat to services springs from a fault in many computers which are not able to recognise the date change to 2000 and will
simply shut down. Mr Guenier, who now heads the Taskforce 2000 pressure group, said he had urged Mrs Beckett to ensure more
transparency about the problem, especially in vital public utilities where it was still not clear how prepared they were. He added that
up to nine departments and agencies were seriously under-prepared. He said: "I think Mr Dewar might be reflecting what people are
saying privately. It would be the first time I have heard that particular point."

Last night the Government tried to play down the row. Downing Street said preparations were "well advanced". A spokesman said:
"We are doing everything we can to ensure essential services are not threatened. The utilities regard the risk of disruption as minor."
Helen Liddell, Scottish minister, accused the SNP of creating "hysterical hype". ________________________________

Those interested in reading the Russian Communist Party's current anti-Semitic diatribe can find it at today's GUARDIAN
newspaper [UK] site at: reports.guardian.co.uk

Those interested in seeing how
Christians
are already being made to appear the fall-guys for future Y2K shortages and panic may wish to read the WIRED article at:
wired.com

Take them both as a warning of more to come as the search for Y2K "scapegoats" heats up....and keep getting ready!



To: JDN who wrote (13183)11/6/1998 10:33:00 PM
From: SOROS  Respond to of 13949
 
alert@y2knewswire.com

MASS SHORTAGES IN THE PREPARATION INDUSTRY

As we've been reporting at Y2KNEWSWIRE.COM, the shortages in the preparation industry are getting worse. MUCH worse. This
isn't fear-mongering, this is a statement of fact about the preparation industry.

We've done numerous interviews with owners of companies that sell Y2K-related items, and frankly, it's getting harder and harder
just to get these people on the phone.

The attitude is changing as well. A few months ago, a supplier might be willing to talk to you IF you promised to spend thousands of
dollars. Today, they are likely to have a bad attitude. Read this piece of text from a site offering steam engines for electrical power
generation:

"Time is up. If you have to ask questions like: "How much electricity do I need?" or "Why is it so expensive?", stop right here and
go on to something else. It is too late. If you don't have a plan together by now, you probably won't make it. [Our company] is
working on a backlog and simply does not have time to consult anymore. Stay on the grid. However, if you have your act together
and know what you need and have the money, then please read on."

THIS IS THE ATTITUDE YOU'LL SEE IN 1999 The Y2K supply industry is moving into a "take it or leave it" phase. They have
thousands of customers with fistfuls of dollar -- they certainly don't need one more person wasting their time with questions (at
least, that's the way they see it).

If you think "the customer is always right," you'll find that's not going to hold up in 1999. The real rule at play will be: "Cash is King!"

Bottom line is simple: If you've been
thinking
about getting ready for Y2K -- you know, buying a good water filter, a hand-cranked radio, some solar panels or whatever -- DO IT
NOW or chances are, you won't ever get it done. It's looking more and more like waiting even until the end of this year will simply be
too late for many products.

Here's more of what's in the WIRED story, which starts out with:

"The phones are already ringing when Steve Portela arrives at his office every morning. Orders are piling up as they never have
before. Walton Feed, his bulk food company, doubled its workforce this year to 125 people and a new warehouse will open in late
November. It isn't enough. Orders placed today won't be delivered for six months."

This is absolutely true. Y2KNEWSWIRE interviewed Steve Portela recently and asked about why they couldn't just crank up the
production lines to meet demand. His answer? "We can't just keep growing this because we'd go bankrupt from the overhead after
January 1, 2000." In other words, they're afraid to increase their infrastructure too much right now because they'd be left with
enormous overhead after the Y2K panic ceases.

Remember, companies like Walton Feed have, for decades, served a very small customer base. Walton Feed served primarily
Mormons -- and only the fraction of Mormons who followed the advice of their Church at actually stored food. Now, suddenly, with
just a very
small
percent of the American population waking up to the Y2K problem, Walton Feed is already backlogged for six months.

Frankly, by January, we can write Walton Feed off the survival map. They'll be backlogged well into 2000.

The story also mentions the backlog in generators: "Loren Day, president of China Diesel Imports, spends a good portion of each
day puzzling out how to crank out more and more generators to meet a swell of Y2K orders. Shipments of his company's most
popular 8,000-watt model are already running six months behind."

And Loren Day is quoted as saying, "Orders are up about 1,000 percent since the first of the year, and the amount of people who
will want a generator now is nothing compared to the amount of people who will want a generator later."

Solar, too, is feeling the Y2K pinch. Laura Meyers, who works for a solar supplier in Montana, says, "We're totally swamped by
Y2K. We're beginning to see some lead times on some of our products. By next spring it's going to be insane."

It goes on. Demand for non-hybrid seeds is sky-high. Demand for gold coins is shooting through the roof. The premium markup on
silver coins has leaped from 5% to over 25% and is expected to reach 100% sometime in 1999.

Remember, too, this is with only a FRACTION of the American population either 1) aware of Y2K or 2) worried about Y2K.

Bottom line is simple: anyone who waits until 1999 to start purchasing supplies for Y2K is going to find that prices are sky-high,
backlogs are six months to a year, and frankly, some suppliers will simply be wiped out.

THAT'S WHEN THE PANIC BEGINS Right now, you can still buy supplies. But when people realize they can't get what they need --
even if they're willing to pay for it -- the panic begins. It's human nature. We are so used to a seemingly-unlimited supply of
everything now in 1998 that it's hard to imagine hearing the answer: "We're out, and we'll be out until after 2000." But that is
exactly
what people are going to start hearing in just the next few months.

GOVERNMENT MAY PRE-EMPT THE SUPPLIES Here's a possibility that's been talked about quite a bit recently: even if you have
an order in with a company like Walton Feed, even if you have a promised delivery date in early 1999, the federal government could
just come in and demand all the products from Walton Feed, pushing your order into last place. Can the government legally do that?
Not really, but they can make it clear to the president of Walton Feed that if government orders aren't filled first, there will be all
kinds of trouble. Maybe the IRS decides to audit them, maybe the EPA comes to take a look at the food production plant. You get
the picture.

This is why the important thing to know in 1999 is not who is SELLING food, but who still HAS it! And in a shameless plug for our
sponsor, you should check out the details on the Y2K Sourcebook, because it provides answers to this problem.

WIRED story at: wired.com. html?all

NOTE: This WIRED story was written by Declan McCullagh. Y2KNEWSWIRE thinks it is a well-done news piece that
communicates an important message: it's getting too late! If you'd like to thank the author for the story, you can e-mail him at:
declan@wired.com

RUMORS This rumor is related to what we were talking about above. We keep receiving e-mail rumors about the White House
ordering large quantities of food from a feed supplier in Idaho (probably Walton Feed). We have not yet been able to confirm whether
this is true. If you have a
credible
source for verifying this (such as a person who works at the feed company or a published news story on it), please e-mail us at
tips@y2knewswire.com

12% OF BANKS ARE BEHIND SCHEDULE The results of this study appeared in "Credit Union Times" magazine (link below).
According to a Y2K readiness survey released by Weiss Ratings, Inc., 12% of banks (and S&Ls) are behind schedule on Y2K
repairs. The story reports that 1500 "depository institutions" partipated in the survey.

Link at: cutimes.com

The real question here is not how many banks are behind schedule. The real question is how many banks being behind schedule
would be enough to cause major problems in the banking industry?

And that answer may be a smaller number than most people suspect. If just 5% of the banks in the country fail to make the Year
2000 deadline, that
could
cause a cash panic where frightened customers yank their money from banks. As we've described many times in previous
Y2KNEWSWIRE reports, the banks only hold a little over 1% of the cash they actually owe depositors. While the Fed is planning to
have an extra $250 billion on hand, that's still on a fraction of the $3.7 trillion in deposits held by banks and owed to customers.

For these reasons (and more), the news that 12% of the banks are late is worth noticing. Furthermore, this study is most likely
relying on banks' self-assessment of their compliance status, meaning when the bank says, 'We're on time,' it is taken as being
true. As we've seen in the past, many companies overstate their Y2K remediation progress (some intentionally, some unknowingly).
The real figure of banks that are behind on Y2K repairs is probably something closer to 20%.

And this is the industry that's in the lead according to the recent Gartner Group research report. Read it at:
gartner11.gartnerweb. com/public/static/aboutgg/pressrel/testimony1098.html

So we have several items stacking up here:

At least 12% of banks are reporting they are behind schedule in repairs
Experience tells us the real number is much larger, perhaps 20%
Gartner Group research reveals banks are the furthest ahead of any industry

Add to this the fact that the banking system as a whole needs to operate at near-100% accuracy or it will be bogged down by faulty
data exchanges, downed computers, and never-ending customer service problems. If even 5% of the banking transactions in the
world fail to successfully complete, the resulting chaos in the banks would be tremendous. Wary customers, rather than face the
possibility of their money simply "disappearing" into thin air, will pull out their cash. At least you can hold onto cash.

This raises an important question: can the banking system as a whole maintain better than 99% transactional accuracy? Not with
12% of the banks non-compliant. Either these banks need to get a move on it or we are going to witness serious banking problems
14 months from now.

Remember, too, that the Treasury Dept., which oversees the currency and interacts with banks on a daily basis, won't be
Y2K-compliant until AFTER January 1, 2000. They are currently receiving a "D+" grade on their compliance efforts. Details at:
freedom.house.gov

GOOD SAMARITAN LAW WON'T HELP IN EUROPE It sounded like a great idea: pass a law that would let U.S. companies speak
freely and openly about their Y2K compliance status without the worry of lawsuits.

But this story from "Computing" points out one serious flaw: "Companies using US 'Good Samaritan' legislation to claim legal
privilege for Year 2000 statements will leave themselves open to legal action in the UK."

As a result, companies large enough to have both an American and European presence are likely to stay tight-lipped, defeating the
entire purpose of the new law.

Story at: webserv.vnunet.com. right_frame?p_story=67827

MORE WATER STORAGE TIPS A reader mentioned that our suggestion of keeping your old milk jugs and pop bottles for water
storage may not be such a great idea. The milk jugs aren't really made for long-term water storage, and they'll crack and leak in as
little as six months. The pop bottles fare much better, however.

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