New York Federal Reserve VP Fisher Dec. 1 on Y2K Readiness : LUSENET : TimeBomb 2000 (Y2000) : One Thread

This is a rather long article for your reading pleasure.


The Federal Reserve is ready for Y2K and has taken steps to ensure liquidity in the financial system, says New York Federal Reserve Bank Vice President Peter Fisher.

Fisher, who is also manager of the System Open Market Account for the Federal Open Market Committee (FOMC), gave his assurance, along with a description of the steps the Federal Reserve has taken to prepare for the arrival of the new millennium, at a December 1 address in New York City.

Money markets, Fisher observed, have been engaged "all year in a collective effort to price the uncertainties associated with the century date change."

During that time, Fisher suggested, markets went from denial of the problem to the other extreme -- with financial markets participants seeking near absolute assurance that there would be no disruptions -- to a third stage with a more nuanced view of the risks involved.

This third stage, Fisher said, recognized "that deviations from normal behavior in anticipation of the century date change are as likely -- perhaps more likely -- to create problems than are any computer-induced date errors."

"This stage," he asserted, "reflects a mature appreciation of the risk that human beings are as likely to screw things up as are computers, that 'defensive' human reactions could trigger perverse consequences, and -- to translate FDR into financial market jargon: the only thing we have to fear is an extreme imbalance of fear and greed."

-- y2k dave (, December 11, 1999


lions, tigers and bears OH MY!

-- Susan Barrett (, December 11, 1999.

Mr. Fisher says exactly what I would have expected him to say: "Please don't take your money out of our banks!"

-- cody (, December 11, 1999.

Please don't. I have money in Treasuries. Don't hurt me, you brutes.

-- Mara (, December 11, 1999.

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