WASHINGTON (AP) — Federal Reserve Chairman Alan Greenspan characterized as virtually nonexistent the threat that the United States will suffer massive computer failures because of the Year 2000 date change. But he cautioned that the economy could still be affected, depending on how many businesses and consumers alter their normal buying patterns because of unwarranted fears.
“The probability of a cascading of computer failures in mission-critical systems is now negligible, given the testing that has been done, the backup plans that are in place and the great adaptability and ingenuity of the American worker,” Greenspan said.
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Greenspan said the private sector has spent an estimated $50 billion to upgrade computer systems so that they will not misread the date 2000 as 1900.
“While it is easy to obsess about the few institutions in our society that may not be ready, let us not lose sight of the fact that the overwhelming majority of us are not only prepared but have contingency plans to deal with breakdowns,” Greenspan said.
In terms of economic impact, Greenspan said he was now more concerned not about the possibility of major computer failures, but how the public and businesses may alter their spending patterns in the months ahead.
