Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Discuss Year 2000 Issues -- Ignore unavailable to you. Want to Upgrade?

To: C.K. Houston who wrote (4624)	3/13/1999 4:08:00 PM
From: John Mansfield	Read Replies (1) \| Respond to of 9818

y2knewswire.com ' You stated that working people would set aside $1000 for day-to-day cash needs. That's a total of $139 billion in cash withdrawals. You stated that households would cash out 20% of their savings (both savings accounts and mutual fund holdings). That comes to a total withdrawal of $66.6 billion. You said that 30% of companies would reserve a two-week supply of cash to meet the January payroll. That comes to $37.5 billion. You also said that businesses would withdraw 10% of their deposits. That's a total of $310 billion in cash withdrawals. According to your numbers, this will be a total withdrawal of $553.2 billion. You stated that the Fed would bring an additional $200 billion to the banks. This is on top of the existing bank reserves of $49.4 billion. This provides a total cash availability of $249.4 billion. Summary: according to your assumptions, the banks will have a total of $249.4 billion in cash available. Cash withdrawals will be $553.2 billion. Should your scenario come true, the banks will run out of cash. In fact, the banks will be $303.8 billion short of cash. Run the cash computer again