Thank you to those who responded to my question. The situation was someone on my AlabamaY2K@olist.com list stating that Ed Yourdon, Ed Yardini, Peter de Jager, Sen. Bennett and others advised leaving your money in the bank except for enough for a couple of weks. Guess there will always be those who will state their own opinion as someone else's in an attempt to gain credibility!! I knew this would be a complete turn around for Mr. Yourdon. I never read anything he wrote that said other than think and think again for yourself. Thanks again, Amelia

-- Amelia Kay Edgeman (akeyorkie@webtv.net), May 31, 1999

Answers

Amelia:

Like most such commentators, Yourdon hasn't made any specific recommendations about leaving it in or taking it out, although Yourdon has recommended that if you remove it, you keep it sensibly safe from fire or theft. I don't know if Yardeni has spoken about this, but I can't imagine him recommending that everyone withdraw all their money. I believe de Jager has said that the bank is the safest place for your money (as has Greenspan). Of course, you are allowed to withdraw at any time (although there are procedures for withdrawing very large amoungs that involve delays while the bank gets the currency).

The fact is (and it's been beaten into the ground here), the banks simply cannot convert everyone's deposits into cash. There isn't that much cash to go around, or anywhere close to it. Beyond a certain point, the government can be expected to step in and take steps to prevent widespread public action that threatens to destabilize the banking system. And no matter how serious banking software problems turn out to be, a run on the banks cannot make the situation better, and can easily make it worse.

My recommendation is to create a household budget item called (maybe) "mattress", and convert the budgeted amount to cash each month to store in this category. Oh yes, and start this budgeted expense about two years ago! My feeling is that whether or not the bank really is the safest place for your money is too close to call right now.

-- Flint (flintc@mindspring.com), May 31, 1999.

> called (maybe) "mattress"

We call ours "fruit jar"

-- Greybear (greybear@home.com), May 31, 1999.

As usual, Flint offers great advice -- only its applicable to the year 1995, not today. If you, today, do not have a SIZABLE amount of cash -- in small denominations to include coins -- safely tucked away where you can have access to it when you need it (not a bank -- more like buried by the third tree from your house, and a few other places), you are leaving yourself open for a lot of grief come Y2K, or even if/when enough people decide they want to cash out. You have to think: we are on a ship, the ship is sinking, there are only a few lifeboats.

-- King of Spain (madrid@aol.com), May 31, 1999.