WSJ Op-Ed - Y2K is Money-driven Hype!

greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread

Has anyone read the latest Wall Street Journal op-ed piece on Y2K (July 20, "To Figure Out Y2K Hype, Follow the Money" by Paul Kedrosky)? There's really no need to, because the title says it all. But for those of you out there who wonder why the stock market is still climbing, let me quote a few choice lines from the article.

"...Fixing the problem is well under way at most organizations; it is already fixed in others. Even the usually glacial U.S. government has done speedy work squashing Y2K bugs in many systems."

"So if real progress is being made, then why is the Y2K drumbeat getting louder rather than quieter?"

"Who wins financially if Y2K remains a big problem? The answer: consultants, software vendors and lawyers."

"An unholy alliance of companies, from information-systems consultancies... to major accounting firms... to software companies... and hot software startups... all see the Y2K problem as a money-making opportunity."

"None of this is to say that there won't be some irritations. Some problems will cross the line from irritating to embarrassing; some may even cause damage. But the likelihood of catastrophe, of global recession--let alone a return to preindustrial society--is slim to none. People who say otherwise are selling something."

In this article, Mr. Kedrosky (an assistant professor of commerce at the University of British Columbia in Vancouver) has flippantly and without evidence dismissed the Y2K problem as overblown hype. Unfortunately, that is exactly what most people want to hear, regardless of the facts.

At this point in time, articles such as this one are much more detrimental than gloom-and-doom articles about the seriousness of Y2K. "No problem" articles keep many people blissfully ignorant of the true scope of Y2K. When the full magnitude of the problem begins to sink in during 1999, articles such as this one will have contributed to the mass panic which will ensue.

So who's a bigger threat to the stability of our society: Gary North or Paul Kedrosky?

-- Nabi Davidson (nabi7@yahoo.com), July 20, 1998

Answers

Yep. Follow the money. Who has more to gain from downplaying Y2K economic dangers than the bears on the Street? The minute analysts admit to a problem, the market crashes. I'm sure the kingpins are ready to cash-out in time. The fact that they're willing to inconvenience or even kill people should not surprise anyone here.

"The basis of optimism is sheer terror." --- Oscar Wilde

-- Hallyx (Hallyx@aol.com), July 21, 1998.


I wouldn't dismiss people who think there is a problem as trying to sell something. I wouldn't even call them crazy. The worst you can call them is paranoid.

-- Amy Leone (aleone@amp.com), July 21, 1998.

WSJ will have quite a time selling their paper if the market crashes. That's why they are using any hot air available to buoy up the bubble. Get those last minute profits in!

-- Kay P (Y2kay@usa.net), July 21, 1998.

Moderation questions? read the FAQ