A Reuter's story (Oct. 6) on bank liquidity has not received the front-page coverage it deserves.
As I have said, over and over, the biggest easily predictable threat from y2k is to the fractional reserve banking system. This story confirms my warning.
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"It is our prediction that it will only take five to 10 percent of the world's banks payments systems to not work on that one day to create a global liquidity lock-up,'' said Robert Lau, managing consultant at PA Consulting in Hong Kong.
I don't think the markets have quite grasped the implications of what will happen if the entire system goes down, '' Lau told Reuters. . . .
Banks will not be able to settle accounts, investors will not be able to access funds, traders will not be able to make deals, consumers will not be able to get cash, companies will not be able to buy materials.