"Fed stashes cash to prepare for Y2K

Dont bank on it. We mentioned in a previous column that the Federal Reserve Board recently put aside $50 billion in preparation for Y2K bank runs (the Fed doesnt use that language, of course). Now theyve stashed another $50 billiona total of $250 billion. But is that enough to tide us over?

In mid-October, Weiss Ratings Inc. released results of a bank survey that showed 12 percent (about 1,300) of the nations banks and financial institutions are behind schedule in their Y2K-compliance efforts. Most vulnerable: community banks and credit unions.

If you are concerned about your banks preparedness, here are some questions that the publication Y2KToday suggests that you ask:

How do you know that vendor-supplied systems are (or will be) Y2K compliant?

Did you test all mission-critical systems, even if they were tested by your vendor?

Will you have sufficient cash to handle increased withdrawals?

Do you maintain the source code for mission-critical systems and have these systems been fully repaired and validated?

What policy changes to your underwriting and servicing of loans have you made?"

Taken from TechWeek article:

http://www.techweek.com/articles/11-2-98/countdow.htm

-- Gayla Dunbar (privacy@please.com), November 02, 1998

Answers

A good point! We have many many problems to worry about, and don't forget to mention the possibility of our US dollars greatly depreciating in value shortly. With the EURO coming on board the economic scene in less than 2 months, it is a real likelihood that the Fed won't need those excess dollars in mid to late 1999, cuz theys all comin' back home from overseas.

http://biz.yahoo.com/rf/981101/r.html http://biz.yahoo.com/rf/981101/b.html

In summary, the above 2 links say .... SHANGHAI, Nov 1 ( Reuters ) - China plans to convert a ``serious amount'' of its $141 billion in foreign exchange reserves into the euro after the new currency makes its debut in 1999, European Commission Vice-President Leon Brittan said on Sunday.

China's foreign exchange reserves are the world's second largest after those of Japan.

The bulk is held in U.S. dolllars with the Japanese yen and German mark also playing a key role.

``There's intense interest in that here and a commitment to put a serious amount of the reserves in the euro,'' Brittan told Reuters in an interview. ........

This is only the tip of the iceberg. When the $450 odd billion dollars come crashing back onto to our shores, it's all over, but the shouting. (US hegemony, that is).

-- (mass@delusions.com), November 02, 1998.