Interesting People mailing list archives
IP: anyone have a dime -- from educom
From: Dave Farber <farber () cis upenn edu>
Date: Tue, 05 May 1998 19:42:37 -0400
ECONOMIST PREDICTS Y2K PROBLEM WILL CAUSE RECESSION In an op-ed piece, Edward Yardeni, chief economist and managing director of Deutsche Morgan Grenfell says that problems arising from the Year 2000 computer glitch could cause a major recession, as businesses fail and government agencies become incapable of delivering basic services, including tax collection, welfare payments, national defense and air traffic control: "The likely recession could be at least as bad as the one during 1973-74, which was caused mostly by a disruption in the supply of oil. Information, stored and manipulated by computers, is as vital as oil for running modern economies. If information is harder to obtain, markets will allocate and use resources inefficiently. Market participants will be forced to spend more time and money obtaining information that was previously available at little or no cost... Furthermore, a 2000 recession is bound to be deflationary. The U.S. may experience a $1 trillion drop in nominal GDP and a $1 trillion loss in stock market capitalization." (Wall Street Journal 4 May 98)
Current thread:
- IP: anyone have a dime -- from educom Dave Farber (May 05)