Sunday, November 9, 2008

And Now Fischer is Worried?

I give up. Last week as I wrote Bank of Israel Head Stanley Fischer said everything was great with the Israeli economy as well as the Israeli banking system. Keep in mind that I pulled news reports that showed how, factually, it's just not true. Well, after heeding my call to come clean with the Israeli public Fischer now says that he is 'worried' about the health of the Israeli economy.

According to a report in Globes, "We expect 2.7% growth in 2009, and we're accused of over optimism. In such times, if you want to be serious, you should be worried, and I am really worried. Wise men won't tell you that there is nothing to be worried about." I guess that means I am a wise man!!!! I have never been accused of that before.

Did something actually happen in the last 72 hours to change his mind? This is getting crazy. If we can't trust Fischer to tell us the truth about the Israeli economy who can we trust?

The Globes article continued that Fischer warned of rising unemployment as well as worsening credit conditions and raised the prospect of companies having a hard time getting financing. In English we call that potential bankruptcy!

Gov. Fischer, if the banking system is so sound, why should companies have trouble accessing local credit markets?

My feeling is that the banking system is not all that healthy and as customers, you had better watch out.

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