Daily News
Y2K To Generate Expansion
By Martin Stone, Newsbytes.
October 22, 1999

Y2K uncertainties will give way to synchronized global expansion in 2000, according to Toronto-based Scotiabank. Heightened Y2K-induced financial and economic turbulence over the next six months will give way to stronger international growth in 2000, said the latest Global Economic Outlook from Scotia Economics, released today.

According to the report, stronger industrial activity should trigger widespread gains in resource prices, boosting export receipts and corporate earnings. Domestic demand should also show solid growth, with consumer spending underpinned by income gains outpacing inflation.

Warren Jestin, the bank's chief economist, predicted that back-to-back double-digit gains in profits this year and next will support additional productivity-enhancing investments in machinery and equipment, But he cautioned that sporadic computer-related problems and a wave of precautionary stock-building, followed by inventory run-off, may briefly disrupt activity as the year 2000 dawns.

With Y2K uncertainties prompting a temporary parking of funds in highly liquid government securities, it is likely investors will become increasingly nervous toward year-end, he said, adding that the Federal Reserve and the Bank of Canada will probably refrain from raising interest rates through the end of 1999.

Once Y2K turbulence recedes and calmer conditions prevail, Jestin predicted that the economic landscape will shift. Monetary officials in the US and UK have already tightened policy to pre-empt inflation, and short-term interest rates will increase next year.

As a more synchronized global recovery unfolds, Canada and Europe are expected to follow suit. The Canadian dollar should strengthen alongside improving trade and fiscal fundamentals, and the further diversification away from US assets.

The report suggested that growth in France, Germany, Japan, Korea, Thailand, Malaysia, Mexico and most of Latin America will improve in the early years of the millennium.

The full report is available at http://www.scotiabank.ca .

-- Bomer Heanfang (hats@inhellfry.com), October 22, 1999

Answers

Things get a little better every day.

...

And a little worse every night.

-- Greybear (greybear@home.com), October 22, 1999.

* * * 19991022 Friday

Mr. Stone and Newsbytes, like most media lackeys, don't have a Y2K clue or are wittingly malicious!

The cognitive disconnect rears:

You don't have any significant economic activity without the infrastructure: power grid, water, sewerage, transportation, food, medical, et al.

Blackouts and/or brownouts won't be conducive to operating electronics or electric motors.

Regards, Bob Mangus

* * *

-- Robert Mangus (rmangus1@yahoo.com), October 22, 1999.

Bwwwwahahahahaha--or however you spell it.

-- Mara (MaraWayne@aol.com), October 22, 1999.