Media told to kool it on Y2K bank reporting

greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread

Just what we need. Spin the press. From Yahoo Y2K news March 10 <:)=

NEW YORK (AP) - Journalists should shun the role of ``Chicken Little'' in reporting Year 2000 computer problems and avoid undermining Americans' confidence in the banking system, a senior regulator said Wednesday.

``If glitches occur or problems loom, report fully on them, of course, but make sure to place the problem in an appropriate context,'' Federal Reserve Board member Edward W. Kelley Jr. said during a panel discussion at the Freedom Forum Media Studies Center. ``Balance and perspective are key.''

Kelley said the Federal Reserve was conducting ``extensive advance planning'' to ensure that banks and savings institutions have cash on hand to meet any surge in demand late in the year from Americans nervous about losing access to their money if computers misread the year ``00'' as 1900 rather than 2000.

Moreover, federal regulators are conducting their second inspection of every one of the nation's 10,600 banks and S&Ls to ensure that customer records are secure, he said.

As journalists report the story over the next 10 months, ``no one should be `Pollyanna' about Y2K, but based on the huge amount of work being done to prepare, it is just not responsible to be a 'Chicken Little' either,'' he said. ``We do not expect the sky to fall.''

Journalist members of the panel explained the difficulties in covering the Year 2000 story. Different sources, for example, present sharply conflicting scenarios, ranging from the sky-is-falling outlook to more rosy visions.

``We have to curb a traditional impulse, which is to answer a question once and for all,'' said Jonathan Krim, assistant managing editor of the San Jose Mercury News. ``This is about whether or not people are going to do the work, spend the money and get the job done in time.''

The Y2K bug occurs because many computers programmed to recognize only the last two digits of a year won't work properly beginning Jan. 1, 2000, when machines will assume it is 1900. Some computers can be reprogrammed, but many devices have embedded microchips that must be replaced.

``Planes aren't going to fall from the sky, elevators aren't going to the basement and pacemakers aren't going to stop,'' said John A. Koskinen, chairman of the presidential Y2K committee, referring to several frightening - but unlikely - scenarios. ``But a lot of things are.''

While both Koskinen and Kelley painted a generally optimistic picture of how well the federal government and the Federal Reserve System were preparing for the date changeover, they acknowleged there would be inevitable problems.

Kelley said the nation's financial system would not ``freeze up or collapse.''

``But is that a guarantee?'' he said. ``No, I can't do that. An educated confidence? Yes.''

Other members of the panel, titled ``Y2K: The Press and Preventing Panic,'' were Barnaby J. Feder, a business and financial reporter for The New York Times; Jeff C. Gralnick, executive vice president of CNN Financial News; James W. Walker, an ABC News correspondent, and Jonathan Wolman, managing editor of The Associated Press.

-- Sysman (y2kboard@yahoo.com), March 10, 1999

Answers

Thanks, Sysman :-)

I'm very patriotic, and have an instinct to think, "Oh, I'll be gallant and leave my money (pennies ;) in the bank! Support the American Cause! Help out! Sacrifice for the common good!"

But I've had these experiences in this life where others making mistakes weren't so patriotic and it messed up large portions of my time and goodwill and trust ;=D

So, cause and effect: if banking is constructed in such a way as individual protection causes it to collapse, maybe that construction should be reevaluated.

The sad fact is, the landlord, utilities, bank, etc will not be patriotic if I cannot pay my bills because of patriotism; they will derisively laugh at my naive idiocy and destroy me with wicked callous top-dog glee.

Live and learn.

xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx x

-- Leska (allaha@earthlink.net), March 10, 1999.


Sysman and Leska,

Take a look at the thread: John Koskinen to talk at "Y2K The Press and Preventing Panic". It's about 35-40 threads before this one. I think you'll find it very interesting.

-- Carol (usa-uk@email.msn.com), March 10, 1999.


Thanks Carol Link <:)=

-- Sysman (y2kboard@yahoo.com), March 10, 1999.

***** READ THE ABOVE LINK *****

Many of you have already. I've been busy today but would have eventually hit it. It is long, but very important. IMHO <:)=

-- Sysman (y2kboard@yahoo.com), March 10, 1999.


If there's no panic, why are they reporting panic? If there's enough money in the bank to cover everyone's ASSets, what's the problem? It's too late, the ball has already started rolling, only the mind games are being played.

-- bardou (bardou@baloney.com), March 10, 1999.


They need to give the "planes falling from the sky" thing a rest. That's just their way of categorizing anyone who is concerned about their well being into a group of fearful lunatics. I don't know anyone on this forum or anyone else who has said they think planes will fall from the sky. What a bunch of crap. I say we crash the Federal Reserve and then we'll see who really gets scared! Everyone withdraw all of your money tomorrow, and tell your friends too.

-- @ (@@@.@), March 10, 1999.

@ - we did have a post hoping for just 1 plane to fall from the sky... <:)=

-- Sysman (y2kboard@yahoo.com), March 10, 1999.

bardou:

I think the government and media have been very successful in preventing any potential mass panic. However, the probability exists that some forthcoming horrible event would surprise everybody, in which case their carefully crafted propaganda would disintegrate much like a pleasant dream interrupted by an early morning alarm bell.

-- dinosaur (dinosaur@williams-net.com), March 11, 1999.


Moderation questions? read the FAQ