I'm Right...You're Wrong

Re-Balance Your Portfolio

2009-10-22T07:27:00.000-07:00

Here is my latest personal finance column for the Jerusalem Post:

It's almost exactly two years since global financial markets traded at all-time high levels. These last two years have seen markets drop by 60 percent, and then stage a furious rally to recoup some of the losses. Read More....

Guma Aguiar Gift Bolsters Nefesh B'Nefesh

2009-01-26T06:29:00.000-08:00

Nefesh B'Nefesh, the Aliyah organization announced today in a press release that they have received a very large gift.

According to the release: " Nefesh B'Nefesh today announced the receipt of a major gift to support the organization's work in bringing Jews from the West to live in Israel. The donor Guma Aguiar, a philanthropist and founder of Leor Energy, gave $8 million to Nefesh B’Nefesh during the period ending December 31, 2008. The organization appointed Aguiar, a board member, to the position of Chairman of Finance.

"This substantial donation demonstrates how the remarkable commitment of Jews who choose to make Israel their home even in these challenging times, is echoed and fortified by the support of generous individuals like Guma," said Tony Gelbart, Co-Founder and Chairman of Nefesh B'Nefesh, "these vital funds strengthen Israel's human resources and ensure its future. The gift has already played a major role in helping Nefesh B'Nefesh bring a record number of newcomers to Israel in 2008."

It's good to know that in trying economic times generous philanthropists can step up donate money to such worthy causes.

Does the Media Have a Double Standard?

2009-01-23T00:29:00.000-08:00

Got an email from reader DM, speaking to the media bias:

Headlines On This Date 4 Years Ago:
"Republicans spending $42 million on inauguration while troops Die in unarmored Humvees"
"Bush extravagance exceeds any reason during tough economic times"
"Fat cats get their $42 million inauguration party, Ordinary Americans get the shaft"

Headlines Today:
"Historic Obama Inauguration will cost only $120 million"
"Obama Spends $120 million on inauguration; America Needs A Big Party"
"Everyman Obama shows America how to celebrate"
"Citibank executives contribute $8 million to Obama Inauguration"
Nothing like fair & unbiased coverage of the news !!!

Netanyahu Against the World: Cut Taxes

2009-01-22T08:31:00.000-08:00

This is a guest post from http://www.israelnewsletter.com/

For the first time in months we have a real proposal that will help extricate Israel from the economic crisis. Instead of another proposal calling for spending billions of taxpayer dollars to build bridges that aren’t needed, PM wannabe Benjamin Netanyahu, has called for a comprehensive overhaul in the tax code calling for steep cuts in both personal and more importantly corporate income taxes.
Finally we have someone who understands that if citizens can keep more of there money, they can then invest, spend and save it according to their needs. The problem with all these other proposals is that with big time increases in government spending you end up taking money from individuals and they have less to create new wealth.
According to Globes: “Netanyahu said, “Over the course of four years, we will lower the top personal tax rate from today’s 46% to a level of 35%, and we will lower the top corporate tax rate from 27% to only 18%.”
Netanyahu added, “The tax cut will be spread over the entire term, and lead to everyone paying about 20% less than what they pay today”.
He also called for more privatization of government held monopolies like the electric, and water companies as well the ports.
With the world on fast track to socialism, it’s so refreshing to hear a leader speak with common sense, and a firm knowledge of what will actually save the economy.
I know that certain newly sworn in presidents believe that we all need to suffer in order to fix the economic issues that we all face, and that ‘greed’ was what caused all these problems, but ‘greed’ is what powers the economy forward. It’s not a bad thing but a good thing. the greed that Netanyahu talks about is about letting you and I keep more of what we earn, incentivize us to make more so that w can better our lives. Is that Greed? The fact is that as personal incomes rise, so do donations to charities. It appears that there is a correlation between making more and giving more. That doesn’t sound much like greed to me, and that’s the kind of personal sacrifice that should be encouraged.

Tzipi Livni and the Release of Gilad Schalit

2009-01-20T13:24:00.000-08:00

It's no secret that I am not the biggest fan of PM wannabe Tzipi Livni, and her speech today helped cement my view. According to the Jpost: "I sent Gilad Schalit [to the front], not personally - but he is an IDF soldier," the foreign minister said during a speech at the Administrative College in Rishon Lezion. "We sent him to defend the country and we have an obligation to bring him back. Livni added: "If Hamas thinks it wants to get something beyond humanitarian assistance, which we will give regardless, we have someone who is very important to us, and, for me; one thing is contingent upon the other."

Huh? Isn't she the foreign minister? Where has she been for the last 2.5 years? Where was she during this war with Hamas? Why did she support a unilateral cease-fire, without gaining the release of Schalit? Why didn't she set the release of Schalit as a goal of the war, to begin with?
And what is the humanitarian assistance to Hamas that she is referring to?

Tzipi, enough already. Admit to your failures and leave us alone.

The Expulsion From Gush Katif: Timely Read

2009-01-15T02:29:00.000-08:00

I am not in the business of promoting books, or reading them for that matter, but with the Israeli war with Hamas I think it's important to turn back the clock a few years and remember the days of the expulsion from Gush Katif. Thousands of Israeli civilians, of Gush Katif, as well as of three communities in northern Samaria, were forced out of their homes and given nothing in return.

I came across a book called, "The Expulsion from Gush Katif," which is a compilation of articles from some well-know Jewish writers about the whole lead up to and actual evacuation of the Jewish residents of the Gush Katif settlements.

The Expulsion from Gush Katif is a detailed, moving record of these events. It describes the run-up to the disengagement plan, the actual expulsion, and the events that followed.

The link to the website is www.gushkatifbook.com

It's worth the read.

Caution: Baby on Board

2009-01-12T03:58:00.000-08:00

Just wanted to let you all know that with thanks and praise to Hashem , I am happy to announce that my wife gave birth to a spanking baby boy this morning. She did a great job, and was a real trooper.

Mother and baby are doing well.

Give Hamas the Knock-Out Punch

2009-01-11T09:20:00.000-08:00

IDF Military Intelligence Head Maj.-Gen. Amos Yadlin briefed the cabinet today and said that Hamas has taken a very big hit and are basically on the ropes. The Jpost.com reports, "According to Yadlin, Hamas had realized its error in not anticipating an Israeli response to the ongoing rocket fire, and expecting neither a ground operation nor the cold shoulder the world has shown the group.
He spoke of the cracks in Hamas resilience, its disconnected leadership in Syria, and its waning public support following the extensive Israeli attacks on the organization, but predicted that while Hamas realized that it had no choice but reach a compromise with Israel, it was not about to succumb, and was still capable of striking Israel and the IDF."

Why would our leaders want to accept a cease fire now, when we could knock them out once and for all?

Obama Will Negotiate With Hamas

2009-01-09T02:42:00.000-08:00

It's going to be a tough 4 years for Israel, with the Obama White House. With everyone waiting to see what the Prez. elect will do about the mid-east situation, we have all been greeted with his ' one president at time' answer. Not that having a serving president has stopped Obama about speaking about the economy, and a host of other issues. Obama's silence speaks loudly. To me it signals a departure of the policy of President Bush, to view the world in black and white. You are with us or against us. The beauty of the Bush mantra is that it provides moral clarity. There is right vs. wrong.

Obama doesn't believe in this. he believes that he can speak with dictators and wow them into changing their firmly held views, to come over to his side. Like that's gonna happen.

There is an article in the Guardian that hints about what Israel is going to be up against. "The incoming Obama administration is prepared to abandon George Bush's doctrine of isolating Hamas by establishing a channel to the Islamist organisation, sources close to the transition team say.
The move to open contacts with Hamas, which could be initiated through the US intelligence services, would represent a definitive break with the Bush presidency's ostracising of the group. The state department has designated Hamas a terrorist organisation, and in 2006 Congress passed a law banning US financial aid to the group."

It's not going to be easy for Israel.

There is No Global Warming

2009-01-08T12:55:00.000-08:00

Hey Al Gore? What happened to the polar Ice caps melting by the end of ‘08? Hate to inform you but not only didn’t they melt, they are back to the same level as in 1979! What do you have to say about that?
In an article in Daily Tech, “Thanks to a rapid rebound in recent months, global sea ice levels now equal those seen 29 years ago, when the year 1979 also drew to a close.
Ice levels had been tracking lower throughout much of 2008, but rapidly recovered in the last quarter. In fact, the rate of increase from September onward is the fastest rate of change on record, either upwards or downwards.”
Basically, this whole global warming hysteria is a big money grad and way to redistribute the wealth. I saw a funny comment by mjcutri, which sums up how crazy this whole issue is. Because the US added polar bears to the protected species list due to the supposed melting of the ice, mjcutri says, ” Well, now that the sea ice is increasing, the polar bears are going to have better access to seals now. We must put seals on the protected species list to prevent their slaughter by the polar bears…”
He hit it on the head.

Hamas: Some Sick Puppies

2009-01-07T01:56:00.000-08:00

I haven't posted about the war with Hamas, because I have nothing much to add, but I must say that Hamas, I guess representing militant/fundamentalist Islam, are some sick puppies. Shooting missiles from schools, using human shields so that they will be fired upon and then using their bodies for PR, and using mosques to store weapons and build underground tunnels is just plain sick. Why doesn't the world wake up and see what fundamentalist Islam is all about?

Where are all the human rights organizations begging the terrorists to stop using human shields?

For a 'religious' organization,their respect for human life is a bit lacking, don't you say?

Shabbat in Netzer Hazani caravilla site in Ein Tzurim

2009-01-04T03:58:00.000-08:00

This was sent to me by a friend, updating us as to the situation for the Gush Katif evacuees.

The last hours have been hearing the planes and their explosions over Gaza ---it is amazing but it is so far away still the caravilla shakes slightly. Shabbat we had many rockets falling in this general area but since we have no place to safe areas --there is no need to get hysterical to run to safe place ---and also the siren is from Kibbutz Ein Tzurim and more often than not we can't hear them here in the caravilla site. In a way as crazy as it sounds, it makes you less stressed out than when you hear the siren and feel pressure to run with your kids to safe area. I hope the people in Tel Aviv now realize they are only 20 km. from the Shomron and they have lots of rockets that were smuggled in there --so they better forget about disengaging the Shomron. I know this may really sound crazy, but since I don't have any safe area anyway --my first reaction to hearing the shriek of the rocket and the noise of fall and explosion was -this feels like home- all I need is the sea sand and celery. Tonight it isn't too much fun for those mothers we have here in our Gush Katif communities with a son in there fighting right now near Gush Katif from where they were thrown out and at the same time the mother is in a caravilla site with no safe area to protect her young children when rockets explode nearby. Wish I could explain to those "leftists" who are supposedly for peace demonstrating in Tel Aviv that if we would have not allowed the tunnels and the smuggling of weapons ,rockets etc and parts we wouldn't have to bomb them now.

People who truly want peace must not allow weapons to reach those that lack the morality to use them properly --so that we would have no need to bomb to protect our civilians and people would not have to be. I wish that our government felt that they are sending our dear men into this war not only to protect us but to give us back this dear part of our Eretz Yisrael. I know that there are very many of the soldiers fighting there are motivated also by the hope that their efforts will not only assure safety for half the country but that their mesirut nefesh will give Am Yisrael back this part of our land --for only then can get closer to Shalom..

Shavua tov u'besorot tovot. PS-anyone who knows someone willing to help fund the buses to take the kids out for the day to keep them sane and other special expenses we have in these challenging times --please be in touch tucker.anita@gmail.com

I Made The Wall Street Journal...For Poetry!

2009-01-02T01:22:00.000-08:00

Go figure. After all, I am a big shot financial advisor (well, not really but don't tell!) and I got a request to be interviewed for the Wall Street Journal. So I am thinking that this is going to be great for business. Guess what? They interviewed me for my poetry! It was on the front page! See here.

I am no Edger Allan Poe, but I am known to have made a rhyme or two. And since I write about financial poetry from time to time, the Journal happened to be doing a piece on the topic, and voila, they found me. Special thanks to Mary Pilon for taking the the time to talk with me.

Click here for the full poem.

Help The Kids of Gush Katif

2008-12-31T03:43:00.000-08:00

I received this email and call for help. If you are unable to help please tell a friend.

Dear friends ,
As you know we have no "safe area" in Ein Tzurim caravilla site in which for our children to seek protection during the siren alerts when the rockets explode and fall. The Pikud HaOref has as of yesterday, closed all the nurseries, kindergartens and schools in the area and in nearby areas, probably all this week and perhaps some of next week as well.

We would like to bus between 30 -40 children of Netzer Hazani-Gadid community in Ein Tzurim (ages about 2.5-3yrs until about 13) for daily trips to various communities who will be willing to host entertainment for the children and perhaps some of the parents who are not working . Perhaps youth in the host community or parents could prepare activities in various age groups , perhaps local musicians , actors etc. could help ---an outdoor trip in your area ---anything your community can think of that will make the day pleasant for the kids and parents --would be great!

We have two people in our community trying to coordinate such activities so please, if you have any ideas or would like to organize people in your community to try and help them lift up this glove that would be amazing -- for any ideas suggestions or willingness to do this one day
please contact Anat Meller 054-2562609 in the morning..

Best Ski Conditions Ever-- What Happened to Global Warming?

2008-12-30T02:23:00.000-08:00

With much of the US and Europe blanketed by snow, and the Alps sporting the best ski conditions in a generation, the question must be asked; What happened to global warming(GW)? After all wasn't global warming the biggest threat to humanity. Larger than terrorism? Heck, it's so cold that I even wore a jacket to work this morning, and anyone who knows me knows that that doesn't happen all that often.

There is a must read article in the Telegraph sent in by alert reader DG which discusses this issue. Christopher Booker speaks the truth in his assessment of what has happened with the GW hysteria. "First, all over the world, temperatures have been dropping in a way wholly unpredicted by all those computer models which have been used as the main drivers of the scare. Last winter, as temperatures plummeted, many parts of the world had snowfalls on a scale not seen for decades. This winter, with the whole of Canada and half the US under snow, looks likely to be even worse. After several years flatlining, global temperatures have dropped sharply enough to cancel out much of their net rise in the 20th century.
Ever shriller and more frantic has become the insistence of the warmists, cheered on by their army of media groupies such as the BBC, that the last 10 years have been the "hottest in history" and that the North Pole would soon be ice-free – as the poles remain defiantly icebound and those polar bears fail to drown. All those hysterical predictions that we are seeing more droughts and hurricanes than ever before have infuriatingly failed to materialise."

I have mentioned many times that I remember growing up and reading Time magazine and they had a cover story on a new Ice Age, that was approaching. Can you explain to me how in 20 years we can go from an Ice Age to Global Warming? 2 reasons. 1- If you are an environmentalist/anti-capitalist, the facts don't matter. What matters is finding any way to redistribute wealth and blame capitalism for all that's wrong with the world and how without more government controls, humans will destroy the planet. 2- For rational thinkers the answer is that human effect on temperatures is nil. Oceans, sun spots, volcanoes all play a much bigger role, than my using Right Guard spray deodorant. For people to think that humans are the cause of warming or cooling is just plain arrogance. Believe it or not, the planet has been around a lot longer than certain Nobel Prize winners, and will continue to be around long after they pass from this world.

Funny how death comes into the argument. It sure seems to me that for many, environmentalism is a religion. I'm not saying that we need to be marauders of the environment but a little perspective is needed. Here in Israel we just concluded the Chanukah holiday, and as usual there we calls for people to light less candles, so as not to contribute to GW. This is insane. In fact instead of attacking religion, maybe if they embraced their own religion the environment would be in better shape. Just a thought but instead of holding out on candles, I propose that no one drive their cars on the Sabbath. Something tells me that the amount of exhaust and emissions produced by 100,000 cars does more damage to the ozone layer, than a few candles lit for 8 days.

Chanukah in Hashmonaim: Back to Our Roots

2008-12-28T05:16:00.000-08:00

After the Katsman family Chanukah party, it was off to 'where it all started' Hashmonaim for my wife's family Shabbos Chanukah fest. Again, it was really nice for everyone to be together (I'm not just saying that to stay out of my mother-in-laws doghouse!). If there was ever a reason to have Sunday as a vacation day, these holidays where the family gets together is the proof. It's just a shame that it happens once or twice a year.

Special thanks to D&D for hosting all of us. I know it wasn't easy, but you did a great job. I once mentioned a new cookie business( it's my sister in laws in the interest of full disclosure) that had sprouted up, and I was able to sample some of the goodies this Shabbos, and ....Giddy up! That was some good eatin'. Nothing like playing Apples to Apples while eating oatmeal cherry cookies. For those who want more information click here.

Happy Chanukah.

Gilligan and the Katsman's: A 3 Hour Tour

2008-12-26T02:12:00.000-08:00

We all remember that fateful boating trip that the Howell's, the Professor, Mary Ann, Ginger and the crew took, decades ago, that was meant to be 3 hours but has continued for more than 30 years. Well, on our way to a family Chanukka party we also enjoyed our own special 3 hour tour. It took us 3 hours to get to Petach Tikva- a trip that usually takes about an hour. As with Gilligan, there was some stormy weather, but instead of almost being saved by Headhunters and Matobins, we were entertained by some of Israel's finest drivers and Na Nach's from the Breslov Chassidic sect. As much of Jerusalem was stuck in traffic, some drivers were in such hurry that they actually drove on the sidewalks, with little regard to pedestrians, in order to save a couple of minutes. While not particularly educational for our children, they thought that it was really funny. Speaking of funny, as we sat stuck in traffic on the Jerusalem-Tel Aviv highway, a group of Beslover Chassidim jumped out of their van on the side of the highway and started dancing. We opened up the window and got a special postcard from them. The kids thought this was hilarious.

Well, we finally arrived, a full 2.5 hours late, but the kids were all in pretty good spirits, all things considered.

Special thanks to my brother and sister-in-law for hosting the family party. It's always great when we all are able to get together, and with so many kids it's certainly not easy to host such a gathering. Thanks to both of you for opening up your home, everyone had a really good time. It was also a special event as it marked the first time all of the siblings were together for Chanukka in about 31 years, and the first time ever in Israel. Let's hope brother AIK decides to settle in the holy land.

BTW- Our family was never big on giving presents for Chanukka. Mother In Israel has a great post about the custom(?) of hanging stockings for the holiday.

Salt, Snow, and Seattle

2008-12-24T09:06:00.000-08:00

So I call my father yesterday to see how he has been coping with all the snow in Seattle. Due to global warming(?), Seattle has experienced a full week of snow and freezing temperatures, the likes of which it has not seen in decades. My father told me that he basically ran out of food yesterday, as he has been stuck at home because the city has done a lousy job of clearing the streets. He had no choice but to drive to the local supermarket even though there was still plenty of ice, because he needed some food.

Why has it taken a week for the city to clear major arterials of snow? It wasn't because they were unprepared rather, the City of Seattle refuses to use salt to clear snowy and icy roads. Why you ask? Because Seattle is the hub of the environmental movement, and the greens are worried about what salt runoff would do to Puget Sound(which happens to be salt water.)

According to an article in the Seattle Times: " The icy streets are the result of Seattle's refusal to use salt, an effective ice-buster used by the state Department of Transportation and cities accustomed to dealing with heavy winter snows.
"If we were using salt, you'd see patches of bare road because salt is very effective," Wiggins said. "We decided not to utilize salt because it's not a healthy addition to Puget Sound."
By ruling out salt and some of the chemicals routinely used by snowbound cities, Seattle has embraced a less-effective strategy for clearing roads, namely sand sprinkled on top of snowpack along major arterials, and a chemical de-icer that is effective when temperatures are below 32 degrees."

It's not as if Seattle is like Minneapolis or some other city which is hit with snow all the time. It rarely snows more than once or twice a winter. How could a little salt cause any environmental damage? Is it worth citizens being stuck at home, and elderly potentially starving or freezing to death because of some ridiculous environmental claim? What could a little salt possibly do to the environment?

I think that the end of the article makes it clear: " Although the city had plowed 29 of its 36 major routes, "nothing is clear," Kuck said late Monday afternoon. "This is a difficult and challenging situation that's going to take us a long time to recover from."
Wiggins, of Seattle's transportation department, said the city's 27 trucks had plowed and sanded 100 percent of Seattle's main roads, and were going back for second and third passes.
"It's tough going. I won't argue with you on that," he said. But here in Seattle, "we're sensitive about everything we do that impacts the environment."

Maybe that's the problem with the environmental movement. They mean well, but have no perspective. They are so 'sensitive to the environment' that they have lost common sense!

Israel’s MediGuide Bought For $300 million by St. Jude

2008-12-23T00:02:00.000-08:00

Thanks to Israelnewsletter.com for contributing this story.

What would you say if I told you that there was a company that developed GPS-like technology for the human body? You’d probably say that that is really cool. Well leave it to Israeli ingenuity and creativity to create such a cutting-edge technology. In fact it’s such an interesting technology that St. Jude Medical(STJ) has bought the Israeli company for $300m.

In a market with very little M&A, this makes 2 acquisitions of Israeli companies in as many months. Johnson & Johnson(JNJ) bought Omrix Biopharmaceuticals(OMRI) as well. This shows that multi-nationals would rather outsource their R&D than develop it in-house. if this trend continues, it could get very interesting for Israeli hi-tech.

MediGuide was founded in 2000 by Gera Strommer, president and CEO, and Uzi Eichler, vice president technology, as a spin-off from Elbit Systems (Nasdaq: ESLT), which owns 41.3% of the company, and with backing from Israeli venture capital fund Vitalife.

According to Globes: “MediGuide has developed technology and products for minimally invasive navigation and tracking within the human body. Its devices are for use in cardiac procedures and catheterization. The system consists of sensors mounted on a catheter introduced into the body, with the locating done on the basis of the distance of the sensors from several sources of magnetic radiation, with an accuracy of fractions of a millimeter.
The information from the sensors is combined with an image of the interior of the body, in a way that is similar to the way locating using a GPS device works. Since in catheterization or other invasive procedure, the human body undergoes changes, the device measures physiological indications from the body breathing, EKG, and so on and amends the picture accordingly.”

What will they think of next?

Zygi Wilf and His Menorah

2008-12-22T04:25:00.000-08:00

So I am up at 2am watching the Minnesota Vikings fumble the game away to the Atlanta Falcons. With about 2-3 minutes left in the game the cameras focus in on the owners box. In it you see a lit Menorah. I am not sure how many of you saw this but that's way cool.

I can't stand the Vikings, mostly because two of my friends, HH and DB are from Minnesota and I wouldn't want to give them the satisfaction of me liking their team. But way to go Zygi. Lighting the Menorah at the proper time, and then having it displayed for the whole nation to see is the true Mitzvah of publicizing the Chanuka miracle.

With all eyes on Jewish fraudster Bernard Madoff, it's definitely refreshing to see a Jew do something positive.

Livni And Hamas

2008-12-21T05:30:00.000-08:00

My favorite pol, PM wannabe Tzipi Livni is at it again, saying that under her rule, she will topple the Hamas in Gaza. Humm.... Isn't this the same Livni who allowed Hamas to run in elections a few years ago, and vastly underestimated their popularity, and was 'shocked' when they took over. isn't this the same Livni who has travelled the world trying to limit support for Hamas.

Nice, Tzipi, very successful on all fronts.

Now you expect us to believe that you and only you can stop the Hamas. Gimme a break!

According to the Jpost: "The people of Israel are threatened, missiles are falling," she said. "I won't say what moves should be made. There is no calm in Hamas controlled Gaza. Israel, and a government under my leadership, would topple Hamas in Gaza with military, economic and diplomatic means."

What nonsense. Hello, Tzipi. Aren't you already the chief diplomat of Israel? You have failed in your role as FM, and now you want us to believe that that makes you qualified to be head of state?

I don't think voters are that gullible.

The Orthodox Female Michael Jordan

2008-12-19T01:54:00.000-08:00

Thanks to New Rules of Investing for alerting me to this story.

We all remember the headlines about the Jewish Michael Jordan, Tamir Goodman. Well forget about him because we now have an orthodox Jewish female, who is creating a buzz of her own. Naama Shafir, an Israeli from around Tiberias, is the freshman star of the University of Toledo women’s basketball team, and the first Orthodox Jewish female to ever get a sports scholarship to an NCAA school.

According to a feature in the Jewish Week: "As a Sabbath-observant, kosher-eating minority of one on the Toledo campus, Shafir is providing an education about the customs and requirements of Orthodox Judaism, and the team is serving as a model of religious tolerance.
Her favorite food, according to a player’s profile in the Rockets’ media guide, is “kosher food.”
“My teammates ask a lot of questions,” Shafir says. “I explain.”
Alerted to the symbols of kosher certification, the other young women on the team, Christians, many of them African Americans, go out of their way to find products with the Orthodox Union’s OU symbol when buying snacks, she says.
With the guidance of her rabbi in Israel, who advised her when she was the sole Orthodox girl on her national team a few years ago, she has worked out an MO that allows her to follow Jewish law while playing at the highest level of college hoops."

I think this is very cool. She is a great role model for Jewish girls in the US. Not quite your typical JAP! What's so interesting is that the Israeli media hasn't picked up on the story. When they do, I can't wait to hear the reaction; especially from the Orthodox community. I can imagine that while some will be proud and supportive, there will be many other prominent Orthodox Jewish leaders who use the word 'disgrace' 'not modest'- just to name a few.

Obamonics Hits New York: 137 New Taxes

2008-12-18T04:49:00.000-08:00

Don't worry Obama will save. Don't you know, he is all about change you can believe in. Well Americans better wake up, because if what just happened in New York is any indication, 'Change' is about all you will have after 4 years of Obama.

The Gov. Paterson of NY, presented his tax increase plan which is thought to raise over $121 billion in revenues, and taxes everything under the sun.

According to the NY Post: " The Draconian plan calls for:
* An "iTunes tax" of 4 percent on videos, music or pictures downloaded from the Internet.
* A 4 percent tax on taxi, limo and bus rides. That means a $10 cab ride would cost 40 cents more.
* A 4 percent entertainment tax on tickets to movies, concerts and sporting events. That would add nearly 50 cents to a $12 movie ticket or $1.80 to the cheapest $44.50 seat at a Knicks game.
* The tax on beer increases 24 cents per gallon, or more than double the current rate, which means about 30 cents a case.
* An 18 percent tax on non-diet soft drinks, which aims to reduce child obesity. A $1.50 can of Pepsi would then cost at least 25 cents more. "

Hello. My hunch is that much of the planned increase revenue take will never materialize. I bet that someone will find a way to get around the download music tax. What about the tax on non-diet soft drinks? People will start drinking diet drinks.

For New York, which has seen people leave the state in droves, this new tax increase plan will function like a kick in the b***. Why on earth would someone want to stay there.

I hate to think what will happen if this brilliant plan becomes national policy during an Obama administration.

What Others Are saying About Madoff Scandal

2008-12-17T02:22:00.000-08:00

For those looking to see what other bloggers are saying about the Bernard Madoff $50 billion scandal, check out a blog roundup over at Israelnewsletter.com.

Do We Need more Regulation In Lieu of Madoff Fraud?

2008-12-16T04:15:00.000-08:00

As if the pro government regulation movement needs another push, the Bernard Madoff $50 billion Ponzi scheme is sure to usher in more calls for more government regulation. With banks being nationalized, and the auto industry soon to follow suit, the political-economic pendulum has swung 180 degrees. Government, which in most of these cases is the cause of the problems, is being looked to, to be the savior of the entire global economic system.

Now with the Madoff fraud, we are going to hear calls of more regulation of the securities industry. But is that going to solve the problem? It's sort of stupid to legislate more laws, when those on the books are not being enforced. After all, the SEC should have been all over Madoff Securities long ago, but they dropped the ball.

Regulation is not the answer. There is more than enough regulation to discourage anyone from setting up a securities company. What is needed though is for the current regulators to actually do what they are mandated to do.

Is Madoff Fraud Going to Cause Anti-Semitism?

2008-12-15T03:57:00.000-08:00

I am not a big Anti-Semitism guy. I usually cringe when Jews bring up the issue, sort of like the Jewish race card, but the $50 billion fraud by Bernard Madoff, has me worried that we may be in for a wave of Anti-Semitism. The past 14 months of chaos and disaster in global financial markets has been disproportionally affected Jews. From former Lehman Brothers CEO Richard Fuld, to AIG head Maurice Greenberg and now Madoff, almost all the high profile scandals have Jews at the forefront.

The blogesphere has been filled with Anti-Semitic posts, blaming everything from the September 11 terror attacks, to the collapse of the global financial system on the Jews. I decided not to link to anyone of these blogs, as I don't want to help their traffic. Needless to say, Jews may be in for some hard times.

Jewish Philanthroy to Be Hit As Result of Madoff Fraud

2008-12-14T01:05:00.000-08:00

Not being mentioned much in the press is the impact on Jewish giving that the Bernard Madoff ponzi scheme will have. All you have to do is read the names of some of the victims to see that Jewish philanthropy is going to be smacked due to the fraud.

The Wall Street Journal online says: "During golf-course and cocktail-party banter, Mr. Madoff's name frequently surfaced as a money manager who could consistently deliver high returns. Older, Jewish investors called Mr. Madoff " 'the Jewish bond,' " says Ken Phillips, head of a Boulder, Colo., investment firm. "It paid 8% to 12%, every year, no matter what."

The article continues, " Mr. Madoff handled investments for the Judy & Fred Wilpon Family Foundation, which distributed about $1 million a year in 2005 and 2006 to charities, according to its most recent federal tax returns."

The fallout from this scandal is going to be far reaching, and unfortunately for Jewish organizations who are already reeling from a slow global economy, this is another nail in their fundraising coffin.

Huge Alleged Ponzi Scheme Nabs Madoff

2008-12-12T05:03:00.000-08:00

Got to invest in the hottest hedge fund , right? Wrong. I have always spoken about the need for investors to require transparency in their investments, and there is no better case for the need for transparency than today's shocking news. Former Nasdaq chief, Bernard Madoff, was busted by the feds, for allegedly committing securities fraud. I think the word 'fraud' is an understatement. You see we are talking about $50 billion! Holy cow.

In a report on Marketwatch: "Madoff counted several large hedge fund investment firms as clients, along with some European banks, so if his firm has lost more than $50 billion, the impact could be widespread.
On Wednesday, Madoff told two senior employees that he was "finished," that he had "absolutely nothing," that "it's all just one big lie," and that it was "basically, a giant Ponzi scheme," federal prosecutors said in their statement.
According to a criminal complaint filed on Thursday and cited by the Journal, Madoff "deceived investors by operating a securities business in which he traded and lost investor money, and then paid certain investors purported returns on investment with the principal received from other, different investors, which resulted in losses of approximately billions of dollars."
Madoff also said his business was insolvent, and that it had been for years, estimating losses to be at least $50 billion, prosecutors alleged, again citing the two unidentified employees.
According to the complaint, Madoff told one of his senior employees that clients were seeking about $7 billion in redemptions and that "he was struggling to obtain the liquidity necessary to meet those obligations." The employees believed the firm had about $17 billion under management."

Investors should stick to stocks, bonds, mutual funds and work with their financial advisers, check your statement and pay attention to what you own.

Tzipi Livni on Leadership

2008-12-11T22:13:00.000-08:00

Busy criticizing Bibi Netanyahu and the Moshe Feiglin fiasco, PM wannabe Tzipi Livni shed some light on her definition of leadership. In an article in the JPost, she says, "Kadima will choose the best list and I guarantee I won't pull any tricks or move anyone," Livni said. "Leadership means doing what you believe in regardless of what is written in the newspapers."

Hum.... Sort of like wanting to attack Gaza, after doing nothing as Foreign Minister.

BTW- Tzipi, what do YOU beleive in?

Israeli's Most-Googled Terms

2008-12-11T11:08:00.000-08:00

So what do you think are Israel's most searched for terms? Livni, Srugim, Cochav Nolad? Wrong.

Globes is reporting on the annual Google Zeitgeist survey, and the word 'games' takes the top spot: "After "games", the most frequently used search words by Israeli surfers were Walla, Nana, Mekusharim (an Israeli social network), and YouTube. The most frequent query in Israel in 2008 was the "Big Brother" reality show, followed by Channel 10, the song "Matai Nitnashek" (When will we kiss), the "Survival" reality show, and iPhone."

Maybe next year we will get words like: Get hair out of your eyes, I'm Right You're Wrong, Achmanidejad RIP. Just a thought.

3 Investing Tips for Volatile Markets

2008-12-11T04:45:00.000-08:00

With stock markets getting crushed here are 3 tips on investing during volatile markets:

Diversify
To understand this concept more easily, we first need to define the meaning of diversification. Diversification is an investment technique that uses many varied investments within a single portfolio. The idea behind it is that a portfolio of different kinds of investments may, on average, yield higher returns and pose a lower risk than a single investment. Diversification tries to smooth out volatility in a portfolio caused by market, interest rate, currency and geopolitical risks. In laymen’s terms, don’t put all your eggs in one basket. It’s important to remember that diversification does not assure against a loss.

If you include bonds or FDIC-insured Certificates of Deposit (CDs) in your stock portfolio, it may take away some of the volatility of the portfolio, allowing for potentially, more stable returns over the long run.

Don’t Panic
Keep you eyes glued to your long-term goals. It’s important to remember that markets go up and down, and if you made a financial plan, it would have taken this type of market volatility into account. The worst thing you can do as an investor is panic and sell everything and then wait for the market to recover. The market tends to recover very quickly. Large market gains often come about in quick and unpredictable spurts, and missing just a few days of strong market returns can substantially erode long-term performance. Remember the famous investing principle of buying low and selling high. Investors who panic often end up selling low.

Rebalance
The third principle is for investors to update or rebalance their investment portfolios. Rebalancing is necessary for two main reasons. First of all, it keeps your asset allocation in line with your risk level and, secondly, it keeps your portfolio in line with both your short- and long-term goals and needs.

New PA Forces Are The Most Capable Ever: Now I Feel Safe

2008-12-11T03:09:00.000-08:00

As if it's not bad enough that are esteemed Israeli leaders( PM Olmert and PM wannabes Livni and Barak) can't protect us against the enemy, we now have news that the enemy has very 'capable' forces, that of course would never attack us.

According to the JPost: "Keith Dayton, the US army general who is overseeing the training in Jordan of the Palestinian Authority's National Security Force for the West Bank, has praised the new recruits as "the most capable Palestinian security forces that have ever been fielded here," and firmly played down the notion that they might one day come to turn their weapons on Israel."

Israel can't even deal with the un-capable force and soon will have deal with US trained 'capable forces? Oy.

Dayton appears to be living in Kansas. Of course the Palestinian forces will never turn against Israel. It's just like they would never use the 40,000 guns we gave them to shoot at us, or the famous Shimon Peres line that when Arafat spoke about Jihad, he meant a Jihad for peace!

At least the Iranians will never get THE BOMB!

Where Does 2+2=8? In Israel

2008-12-10T08:02:00.000-08:00

The brilliant Jews, A Yiddeshe Kop. These are all descriptions used to describe the intellect of the Jewish mind. Well leave it to the Israeli education system to dispel these stereotypes. Only in Israel do school age kids think that 7+8=21.

With all the money that Israeli taxpayers throw at the education system, not only does it continue to stink but it's actually getting worse. According to a report on Israeli test scores that's in the JPost: "In September, the Organization for Economic Cooperation and Development (OECD), a group of Westernized countries that measures growth and modernization around the world, placed Israel near the bottom of its report on the state of education systems around the world.
Now the Trends in International Mathematics and Science Study (TIMSS) exams have placed Israel 24th out of 49 nations, five places lower than its ranking in 2003. In an additional round of science exams, Israel was placed 25th, two spots lower than it had been ranked in those tests previously."

Of course all those who are truly concerned about social justice are out there crying for even more money. Let's face it; the Israeli education system has turned into a black hole.

What's the solution? I am full agreement with the ideas put forth by Dan Ben-David, director of the Taub Center for Social Policy Research and an economics professor at Tel Aviv University. He says, "You're not going to get any results without reform," Ben-David said. "And the reforms we need fall into three categories: teachers, curriculum and management. We need teachers who are qualified to teach, meaning teachers should get a BA in whatever field they plan on teaching and then learn how to teach, not the other way around. We need to go back to the basics on our curriculum, which means kids need to learn the basic skills they will need before going out to the workforce - reading, writing, math; then we can talk about medicine."
Regarding management, "once you have good teachers teaching the right things, you need to give them incentives to continue and try harder. Reward good teachers... for their efforts," Ben-David went on.
"But we're really far away from that," he said. "And until we enact these reforms, don't expect any surprises in test results. There can't be any more shortcuts."

Amen.

Nefesh B'Nefesh Strikes Again

2008-12-10T00:45:00.000-08:00

How many of you have said, " I would love to live in northern Israel, because it's so beautiful, but can't because I won't be able to find a job." For those of us who grew up abroad, in a house surrounded by trees and with a garden and lots of space to run around, northern Israel would provide the quality of life that we grew up with.

Thanks to Nefesh B'Nefesh and the Russell Berrie Foundation, your dream could turn into a reality. The Aliyah organization, which works in cooperation with various government offices, will bring over 1,000 newcomers to the North over the next few years. You can check out more info. on this project at www.gonorth.org.il.

I always find it amazing that private organizations are able to accomplish so much more than the government can do. We have been hearing about government plans to build up the Negev, southern Israel for years and years and it's just talk. Nothing of significance has been done. Now you have an ambitious private organization, who is able to team with a foundation that has a similar philosophy regrading western Aliyah to Israel, and voila! You have have a program in place ready to start.

Way to go NBN!

2 Tips For Israeli Non-Profits To Survive Economic Crisis

2008-12-09T18:32:00.000-08:00

News reports have been filled with stories of Israeli non-profits organizations scrambling to make up lost donations. Usually the punch line is that if the economic situation worsens, many of these organizations will have to close down due to lac of funding.

First of all I have a friend DB, who works for a large Jewish philanthropic organization and he tells me that historically, during economic slowdowns, donations don't drop off that much, as the large donors are asked to fill the void of mid size and small donors who tend to tapped out on giving.

Ruth Cheshin of the Jerusalem Foundation has a really interesting op-ed in Globes on this topic. She says, "The global economic crisis is already being strongly felt by NGOs and philanthropic foundations. Major donors, who have lost substantial amounts of money, are in no rush to commit to new contributions. Nobody knows what the future holds, so even those who still have millions in their pockets, prefer to be cautious. Medium and small-scale donors, who were in the past able to contribute, are hesitant about answering the call to give in these times. For those who are not eager, the economic crisis represents an excellent excuse for no longer giving.
Whatever the reasons there is one conclusion: the number of potential contributors has been greatly reduced, and with it the money set aside for philanthropic aims. Consequently, NGOs and philanthropic foundations can expect to feel a substantial fall in the volume of donations, and the first to be hit will be the welfare NGOs assisted by these important donations."

I think that there are 2 things that can be done to help ease the pain for these non-profits.

1- Cut costs. There is no reason that these organizations can't be run like businesses. they need to trim the fat and get trimmer. I am not sure how ethical it is anyway for non-profits to pay out exorbitant salaries and provide great perks to their workers. Ultimately these expenses come out of the donation, so the donor ends up giving far less than was intended. Part of this maybe to bring in financial people on a consultant basis to make sure the finances are in order. Let's not forget that non-profits are run by people who want to do good, they may not necessarily be the best in business.

2-Try teaming up with local business. In the US we see non-profits doing joint ventures with companies and members of the business community. It's beneficial for both sides. It's good for corporate involvement in the community, and it's a good source of financial support for the non-profit. Why don't we see that happen in Israel.

Obviously there are more steps that can be taken, but tackling these 2 issues will go a long way in surviving the current economic downturn.

Hebrew Business Week Victim of Slow Economy

2008-12-09T15:23:00.000-08:00

The slowing global economy has reached the Israeli print media. It appears that the Hebrew edition of Business Week, is to be suspended pending either an acquisition or bringing in a strategic partner.

According to Globes: "Sources inform ''Globes'' that Hirsch Media Ltd., owned by Shlomo Ben-Tzvi, has suspended publication of the Hebrew edition of "Businessweek", beginning with next Thursday's edition. Ben-Tzvi is also seeking to sell the franchise of the US weekly. Alternatively, he may go ahead with the launch with a partner.
Hirsch Media has published the Hebrew edition of "Businessweek" for just under a year, after signing a contract with the publisher of "Businessweek" for a Hebrew edition of the weekly 18 months ago."

It's a shame that this is happening as there are few well written Hebrew business magazines. Let's hope that a solution can be found to get this back in print.

Does Feiglin in 20th Place Mean the End of the Likud?

2008-12-09T10:23:00.000-08:00

Oh no. Moshe Feiglin placed 20th and didn't get any other supporter elected with him on the Likud list, and rivals from across the political spectrum are calling the Likud a racist, extreme right wing party.

According to the Jpost: "The Likud was, the Likud is, and the Likud will remain a right-wing party that will isolate Israel in a corner and return us to times that we wanted to escape from," Prime Minister Ehud Olmert. "If Bibi, Begin, Ya'alon and Feiglin come to power, it will cause significant diplomatic damage to Israel."

"Today it was proven that the Likud never ended its quota system for Sephardim and has pushed them back from their natural place," Shas chairman Eli Yishai said.

Yep, exactly. Why is it that Shas always needs to place the race card? I'm sorry PM Olmert, I didn't realise that you have left us in a situation of diplomatic strength!

The fact is that Feiglin failed in his attempt to hijack the Likud. He had no political coattails, and placed 20th. Can any of you tell me who is number 20 on the current Kadima list?

The fact is that rival parties are well aware that they may well crushed during the upcoming elections, and trying to scare the public is the only chance they have at keeping some electoral power.

Likud Primaries: What's 2 hours for Democracy

2008-12-09T09:12:00.000-08:00

So I went to exercise my right to cast a ballot in the Likud party primary yesterday. The delays that were faced by voters were all well documented. I can tell you that it took me exactly 2 hours from the time I showed up at the Jerusalem polling station, Binyanei ha'uma, until I finished voting. What I didn't expect during the 2 hour ordeal was how polite and good natured the crowd was. Voters were scrunched together like sardines barely moving along and I would have expected the crowd to get antsy and start yelling and pushing, but none of that happened. Everyone was in such a good mood, and everyone in my vicinity was having engaging political discussions, mostly regarding Moshe Feiglin. No yelling, just some interesting dialogue.

I guess we are lucky that we live in a democracy, and we enjoy the right of spending 2 hours in line to cast a vote. many people of the world would literally kill for that opportunity. While it was certainly inconvenient, we should give thanks that we enjoy these freedoms.

Shadchan Resume: A Slap in The Face

2008-12-08T07:04:00.000-08:00

There is an op-ed in today's Jpost (why this is an op-ed is beyond me), which just shocks me in the cynical nature that the author takes. Many 'shadchanim' ( matchmakers) try and set up men and women out of pure kindness. They make no money for the service. The author seems to take the track that unless you have successfully set up hundreds of couples, you need not try.

His cynical use of a checklist with questions the like of: " What percentage of the time that you set singles up do they actually get married?
a) Less than 1 percent
b) More than 1 percent
c) A monkey could do just as well

This is just a slap in the face to those who try. So what if your success rate isn't so hot? How high is the author's success rate with women that he just asks out. The answer: zero, he is still single.

I assume that the author is still single. Why the hatred towards those who want to help men and women find each other and get married?

"Since shadchanim [matchmakers] and shidduch [matchmaking] groups as a whole have been doing such a remarkably efficient and successful job, our community and its leaders continue to tout more of each as the primary solution to the "shidduch crisis."

Does the author really believe that there is no 'Shidduch crisis?' How does he explain the thousands and thousands of unmarried men and women. Have we ever had so many older singles in our history?

As an amateur matchmaker I am offended by this article. It's like he is spitting in the face of those just trying to do a kind act. I am just trying to help. If the author doesn't want my help, or that of other matchmakers who volunteer their precious time, then I wish him all the luck.

Livni: The Hawk or The Opportunist?

2008-12-08T02:38:00.000-08:00

So Tzipi Livni says we need to bomb Gaza. Wow, she is turned into such a hawk. Clearly concerned with the well-being of citizens of Sderot and Ashkelon, Livni has had enough of the constant Qassam missile barrage on Israeli cities and views force as teh only option in solving the problem. She has even criticized Defense Minister and fellow PM wannabe Ehud Barak for not being aggressive enough.

According to a report in Haaretz: "The barbed comments came after Livni put out a statement Saturday night, following a weekend in which Palestinians fired nine Qassam rockets and several rounds of mortar shells from the Gaza Strip, saying Israel should "respond with fire" to the shelling and calling on the government to reassess the lull. A meeting will take place Wednesday to discuss the matter."

Just one question for Tzipi; Where have you been the last few years? Aren't you the FOREIGN MINISTER? Hello????

Up and Down Financial Markets

2008-12-08T02:05:00.000-08:00

I just got this in an email that had been forwarded about 5 times, so I am not sure what the source is, but it's interesting anyway.

There have been 14,284 trading days since January 1, 1950. On 33 of those days, the market fell 4% or more. On 35 of those days, the market rallied 4% or more. So there have been 68 moves out of 14,284, showing such days are very rare occurring just 0.4%of the time. 28 of those 68 rare event occurred over the last three months. That's a whopping 41% of all these very rare events since September. No wonder we feel so tired.

Tel Aviv Stock Exchange to Roll Back Hours

2008-12-07T07:12:00.000-08:00

For all of you stock traders out there, pay attention. It appears that the Tel-Aviv Stock Exchange(TASE) is going to cut back trading hours. It appears that as a result of workers striking a few months ago, traders are able to accomplish the same amount of work in a much shorter day. My hunch tells me that most workers, whether they work in finance or not, could accomplish a full day's work in about 1/2 the time.

According to a report in Globes: "Shorter trading days in March and April, which resulted from a labor dispute, showed that trading volume did not fall despite the shorter hours. As a result TASE CEO Ester Levanon appointed a committee to examine the issue. Levanon said, "A review by the committee showed that most stock exchange members support a shorter day, and see it resulting in lower costs and employee satisfaction. Exchange members do not expect a drop in trading volume, nor of foreign investor activity."

I guess something good actually came out of a labor dispute!

Trading in Tel- Aviv will start at 9:00 am instead of 8:30 am, and will end at 4:00 pm. Welcome back 'Bankers hours!'

If it Sounds Too Good to be True, it Probably is

2008-12-07T01:22:00.000-08:00

Recently, news spread throughout the Orthodox Jewish community of people who had been defrauded by a “Ponzi-scheme” carried out by a certain investment firm. The New York Times reported that the Securities and Exchange Commission (SEC) charged the firm in a U.S. federal court with running the scheme, which defrauded nearly 1,200 investors to the tune of about $255 million. This began in 2005, and the scheme specifically targeted members of the Orthodox Jewish community, including many who live here in Israel.

Many individuals who invested all their savings with this firm are now unsure whether they will recover anything. Dazzled with the promise of unrealistically high “guaranteed returns,” many of these unfortunate victims decided to invest, and they may now end up with nothing.

Remember the old saying, “If it sounds too good to be true, it probably is”? Whether it’s that letter you just received in the mail saying that you won $5 million in a lottery that you never entered, or someone promising very high “guaranteed” investment returns, the consumer needs to realize that building wealth is a long-term process. There are no quick fixes.

Instant Gratification
In today’s western society, the concept of instant gratification is constantly being reinforced. Whether it’s our increasing dependence on fast food or the notion of getting rich quick, we have lost the virtue of patience.

The local media is filled with advertisements pitching various real-estate opportunities both in Israel and abroad. They often make very seductive claims, such as a minimal investment with returns of over 200% within three years, or a “guarantee” of a particular return. But how do we know if such claims are legitimate or not?

The first rule is always: buyer, beware. If something sounds too good to be true, it probably is. The second rule is to read the fine print carefully. Oftentimes the small print on the bottom of the advertisement makes it very clear that the “guarantee” comes with many strings attached, and there is a reasonable chance that you can indeed lose some or all of your money. The third rule is to always ask detailed questions, and never let the salesman off the hook. Ask pointed and specific questions to get a better understanding of the investment. Always inquire if there are any risks, and what they entail. If the answer is, “there are no risks,” or lip service is paid to explaining the risks, there is a good chance that you are not getting the full information about the investment, and you should think twice about investing.

This highlights why investors should work with licensed investment professionals. They are very much limited in their use of the word “guarantee,” which is only used for an investment guaranteed by the U.S. government. For a licensed investment professional, inappropriate usage of the word “guarantee” is against the law, and regulators take this issue very seriously.

Long Term
In reality, it is virtually unheard of for a person to accumulate wealth overnight. Rather, it’s a process that takes many, many years. If you are looking to build wealth for the long term, you should start investing as soon as possible. Using an expert will help you decide how to invest your savings, but you should first have a firm handle of your short and long-term goals and needs. Therefore, before you meet with an investment adviser, broker, or other investment professional, it’s a good idea to map out your financial goals. Do you have children or grandchildren to marry off? Are your elderly parents in need of care? Do you need some supplemental income to make it through the month? You need to determine your own budgetary needs and your ability to tolerate risk first. Then, you should ask your adviser what kinds of investments would best fulfill these goals. Use your adviser as a sounding board. The adviser can tell you if your goals are realistic, and if not, you can work together to come up with objectives that can be achieved.

You have worked hard to save money, and it would be a shame to lose it on a dubious “get rich quick” scheme.

Aaron Katsman is President of Global Investments at Profile Investment Services. He is a licensed financial professional both in the U.S. and Israel, and helps people who open investment accounts in the U.S. Securities which are offered through Portfolio Resources Group, Inc. a registered broker dealer, Member FINRA, SIPC, MSRB, SIFMA. For more information, go to www.profile-financial.com or call (02) 624-2788 or (03) 524-0942, or email aaron@profile-financial.com

U.N. Show Their True Colors

2008-12-06T08:27:00.000-08:00

I don't believe it. Can you imagine that the United Nations Mideast envoy condemned Israeli 'settler' violence following the expulsion of Jews for a Jewish home in Hebron?
Say it isn't so. I always thought that the UN was a balanced, rational organization that treated all people as equals. Could it be that that's not the case?

According to a piece in the JPost.com: "I welcome the evacuation by Israeli security forces of approximately 200 settlers from a house in Hebron yesterday," Robert Serry, UN Special Coordinator for the Middle East Peace Process said. "I condemn the ensuing violence and attacks by Israeli settlers against Palestinian civilians and the destruction and desecration of Palestinian property, mosques and graves, as well as settler attacks on Israeli security forces."

Funny, I missed the report condemning the firing of missiles into Israeli cities, and the strong condemnation against continued terror attacks against Israeli targets.

It couldn't be the UN, it must be me. I guess I need to read the paper more often and I am sure I will find the even handedness of the UN.

Likud to Benefit from Habayit Hayehudi Fiasco

2008-12-05T03:50:00.000-08:00

Now that those responsible for bringing down the Mafdal and Ichud Leumi parties have been rebuffed, look for the Likud to pick up an extra 4-5 seats in the upcoming Israeli elections. According to the Jpost.com: " Habayit Hayehudi's Public Council selected Technion mathematician Prof. Rabbi Danny Hershkovitz, Beersheba educator Avi Wartzman and rabbinical courts administrative head Rabbi Eli Ben-Dahan as finalists in the chairmanship elections. The other three candidates, NU/NRP MKs Uri Ariel, Zevulun Orlev and Benny Elon, were dropped."

What this means is that 3 men with zero experience are going to try and lead a substantial voting bloc in the Knesset. Good luck. Who is going to vote for these guys? Too bad because a unified right wing bloc would garner decent electoral support, but not with a bunch of no names on the ticket.

What I find interesting is the irony with all of this. Zevulun Orlev who was a major force behind this new party basically was responsible for the demise of the Mafdal, and now was basically shown the door by his new party. Maybe he should take the hint.

Once Again Jew Banishes Jew

2008-12-04T06:09:00.000-08:00

With terror groups feeling empowered by last week's Mumbai attacks, and busy preparing their next attack on Jewish targets, the Israeli minister of Defense and PM wannabe Ehud Barak feels that the real enemy of Israel are its own citizens. That's why he has ordered more than 2,000 policemen and soldiers to evacuate Bet Hashalom in the holy city of Hebron.

According to the Jpost.com: "Minutes after police entered the building, protesters began to come out. Some walked out, while others were dragged or carried by security forces. Demonstrators at the scene said that at least ten people had been injured just ten minutes into the operation. Channel 10 reported that one person had been seriously wounded."

The fact that this building was purchased legally and the buyer was never given a chance by the activist Israeli Supreme Court to prove his acquisition didn't seem to sway Barak. Clearly trying to shore up waning support, ironic that he is doing the evacuation on the day of the Labor party primaries, Barak is flexing his muscles against his own people. And we wonder why the Jewish people keep facing more and more tragedy.

According to Barak and his cronies, Jews are not allowed to purchase property in their own country and evacuating these ideologues is more important than stopping missile attacks on Israeli cities like Sderot. Is that warped thinking or what?

Palin Proves That She Has Influence

2008-12-04T04:58:00.000-08:00

For all those skeptics who view Alaska Gov. Sarah Palin as a lightweight, yesterday's runoff senatorial election in Georgia proves that she is someone to be reckoned with. She fired up crowds and generated huge turnout at the rallies she attended on behalf of Sen. Saxby Chambliss.

According to Politico: “I can't overstate the impact she had down here,” Chambliss said during an interview Wednesday morning on Fox News. “When she walks in a room, folks just explode,” he added. “And they really did pack the house everywhere we went. She's a dynamic lady, a great administrator, and I think she's got a great future in the Republican Party.”

Palin got a bad rap in the press, and she was clearly kept under wraps by the failed McCain campaign, but there is just no doubting that regular people are drawn to her. Even towards the end of the presidential campaign she was drawing huge crowds wherever she went.

It appears that her position as a power player in the Republican party as guaranteed.

Would You Pay More For Solar Power?

2008-12-04T00:19:00.000-08:00

The Israeli Ministry of Finance should be applauded for sticking to its guns and wanting an energy policy that generates revenues and not dishes out subsidies. It's not that I have anything against alternative energies, after all I support the ultimate alternative energy, nuclear power. It's just that if these technologies are so wonderful why do they cost more and demand government subsidies to get them up and running? If they were so good couldn't the private sector fund these projects entirely and make all the profits? Oh profits, you mean there aren't any?

According to the report in Globes, the Ministry of National Infrastructures director general Hezi Kugler spoke at a conference and said: "The Ministry of Finance wants us to stop and assess the economic gain that alternative energies are likely to generate. Surveys in other places show that the public is willing to pay 20-30% more for alternative energy. We can supply energy from the resource that we have here (the sun) and increase our energy security. These are the right considerations. Unfortunately, the Ministry of Finance is doing everything it can to stop this going before the cabinet because they know there won't be a single minister who will vote against it."

Clearly the Finance Ministry is unreasonable in wanting to 'assess the economic gain that alternative energies are likely to generate.' Mr.Kugler , give me a break. First of all, you tell me who would be happy to pay an extra 20-30% for their energy? I wouldn't be happy to part with that money, and I don't know many others who would be doing cartwheels to pay a lot more either. Second, do you actually have the nerve to see it as being unreasonable that the Ministry ofFinance wants to see if there will be any actual economic benefit from this whole project?

The Finance Ministry deserves a lot of credit on this issue in protecting the Israeli taxpayer from being burned by the alternative energy hype.

The Opportunity of a Lifetime?

2008-12-03T08:23:00.000-08:00

With global stock markets crashing, many investors have panicked and decided to liquidate their stock holdings. However, although it’s hard to find a silver lining in this situation, this could actually be an ideal situation for investors with an abundance of cash or for young, first-time investors. It may even turn out to be a once-in-a-lifetime opportunity. The reason for this is that while experienced investors have been through market falls previously, they may have also lost money during the latest decline. On the other hand, for those looking at the possibility of investing, this is a good time to get started. But why should novice investors take the risk now, when the markets are falling, to start investing?

Buy Low/Sell High
According to an old investment adage, one should buy when prices are low and sell when they are high. Although there is no sure way to declare that a fall has reached its end, the market would definitely be cheaper after a 45% decline than it was before. In other words, the market is somewhat “on sale.” No one likes buying retail, and with the recent market pullback it could even feel as if the investor is buying wholesale! This could be compared with when a local supermarket runs a “45% off” sale. In this situation, shoppers would be lined up around the block to have a chance to make purchases at rock bottom prices. One classic investment strategy is ''buying the dips.'' An example of this would be to wait for a pullback of at least 10% in prices, and then the investor will make his purchase. This strategy often beats chasing sudden hot streaks that can result in overpaying or worse, buying at the top. And as for those “market timers” who want to see “for sure” that the market is moving back up before they buy, they often never get to enjoy the subsequent rebound.

One of the biggest risks of trying to “time” the market is the potential of "missing" the market. This occurs when an investor, thinking the market will go down, reallocates his investments and places them in more conservative investments. But while the money is on the sidelines, the market shoots up. The investor has, therefore, incorrectly timed the market and "missed" the best performing months. Studies have shown how much an investor can lose by being out of the market. According to research by DALBAR, the numbers are telling. For example, when looking at the returns of mutual fund investors over the 20-year period 1986-2006, we see that the average market timer return was -2%. During this same time period, the S&P 500 Index returned 12%. Additionally, during the 10-year period of 1997-2006, the S&P 500 Index achieved an annualized return of 8.4%. If an investor missed just the top 20 days during this entire period, his return fell to -4%. Keep in mind that historical returns are no guarantee of future success.

Oftentimes the market recovery is so swift that by the time investors have made up their minds to invest, it’s too late. The market will have already recovered most of its losses. We have witnessed those types of upward moves over the last few months. We have seen the market move up by as much as 9% in one day.

Getting Started
Many young couples put their wedding money into the bank, where it accrues virtually no interest. Even at that point, however, it is important to start thinking about the future. How will they be able to afford paying for their children’s weddings in 20 years’ time if their savings do not grow? In this situation, it is a good time to make whatever money you have work for you now. To get started, a young couple will find it very useful to consult with a financial adviser, who will help them to define their financial goals and needs. From this, an investment plan can be drawn up to try to achieve these goals and meet these needs.
If this money is left lying around, doing nothing, there is little chance of growing enough interest to use it to its full potential. Investing is a good option, and the recent market drop may well be in your favor. If you buy at a discount now, this increases the chances of potential success.

Aaron Katsman is President of Global Investments at Profile Investment Services. He is a licensed financial professional both in the United States and Israel, and helps people who open investment accounts in the United States. Securities are offered through Portfolio Resources Group, Inc. a registered broker dealer, Member FINRA (formerly NASD), SIPC, MSRB, SIFMA. For more information, go to www.profile-financial.com or call (02) 624-2788 or (03) 524-0942, or email: aaron@profile-financial.com

Jerusalem Real Estate Update

2008-12-03T01:55:00.000-08:00

I just came back from seeing an apartment that's for sale. My wife and I have been looking to buy something for some time, but absurdly high prices have derailed our plans. Well for the better part of a year no matter what they say, the mid-market real estate market in Jerusalem has been dead. The same apartments have been sitting for months with no buyers. Today, finally I had both agents who showed me the apartment admit to me that the market stinks. Bad news for the agents and sellers but maybe just maybe the buyers will get some relief.

The problem, as both agents explained to me, is that the sellers still will not budge. They refuse to lower prices. At some though, they will capitulate and drop prices and then we may very well see prices in sought after neighborhoods drop but 10-15%.

If there is a silver lining in the economic slowdown, first time home buyers may be able to finally afford to buy an apartment in the nation's capital.

Is It Win at All Costs for Netanyahu?

2008-12-02T02:46:00.000-08:00

The Bibi haters are out in full force today, charging that PM hopeful Benjamin Netanyahu has thrown his 'free-market' principles to the wind and will do/say anything to get elected.

Nehemia Shtrasler writes in Haaretz: "It will be interesting to see where else Benjamin Netanyahu goes in his eager pursuit of voters' hearts. He wants so badly to sit in the prime minister's chair that he is even willing to scrap his entire economic worldview and masquerade as Histadrut chairman Ofer Eini."

He says that Netanyahu has given up his ideology in order to get elected. Calling for a broad pension safety net, increasing child allowances and a large increase in government spending, Bibi has basically moved his policies to be in line with those of national labor chairman Ofer Eini.

I am not a big fan of Shtrasler but he does make some good points. Instead of calling for more spending and basically abandonding budgetary discipline, Netanyahu should be out there championing lower taxes, and incentivizing entrepreneurship. After all, the real engine to economic growth is not bailing out billionaires, but it's by encouraging small and and mid-size business creation.

As for the pension safety net, Shtrasler is correct on the facts but wrong on the safety net. He says, " He knows that this "safety net" is a regressive, antisocial policy that no other country has adopted. And who knows better than he that the people have not lost anything in the provident funds, but have in fact earned a profit? From 2003 through 2007, these funds posted a very nice profit - 66 percent. Only this year have there been a loss - 20 percent. In other words, the gains far exceed the losses. So why should we be transferring money to people who made a profit?"

No question that much of this discussion is based on zero facts. Most pensions increased handsomely since Bibi opened up the system. I am not for a broad safety-net. We need to follow the Chilean pension model. Chile faced a bankrupt pension system, and they decided to privatize the system by allowing people to have individual savings accounts. But for those approaching retirement they were given a choice. Accept the new system or you could take a guaranteed pension from the government. Basically a safety net for those close to retiring. That's exactly what we should do here in Israel. For those 5 years away from retirement, give them the choice of accepting a guaranteed government pension, or letting it ride in a private account.

This is the kind of policy we need Netanyahu to speak about. We don't need him encouraging building a road or bridge that no one needs.

Make Friends and Keep Them

2008-12-02T02:17:00.000-08:00

Over at the The Networking Strategist, a great blog for those interested in learning about marketing, Hazel Walker gives some tips on how to be more likable and get along better with people.

Some of the tips she gives are:

Speak Less, Listen More - People don’t want to hear about you they want to talk about themselves.
Don’t Be a Know It All - Even if you do know everything you don’t have to prove it.
Be Engaged - Looking at your watch, over someones shoulder or checking your cell is not engaged.

A someone in business who has a lot of meetings, it's really true that if your counter-party violates any of these rules, the chemistry is shot and little will come out of the meeting. I am unable to count how many meetings I have where the person sitting across from me keeps checking his watch or even answers his cellphone to take a call.

I would say that aside from not being particularly smart as far as business goes, it's also not very polite. People want to be treated with respect and by doing any of these aforementioned things, you end up showing a tremendous dis-respect from the person you are sitting with.

How about some common courtesy?

Israeli PM Hopefuls and Economic Policy

2008-12-01T04:22:00.000-08:00

The Israeli business daily Calcalist (sorry but article in only in Hebrew) has a really interesting article today. The paper posted various economic questiopns to the 3 Israeli Prime Minister hopefuls, Ehud Barak, Tzipi Livni and Benjamin Netanyahu.

Barak spent most of his time pleading for a greater role for government in the economy. From raising taxes, to ending budget discipline by advocating more and more government spending. He spoke about "piggish capitalism" and the need to end it, and a new focus on social and economic justice (Code words for Socialism?) I guess he knows about the evils of capitalism, buying a multi-million dollar apartment and making millions in speaking fees and as a large investor in an Israeli satellite company that went public. Hypocrite?

Livni, as she is capable of doing, basically said nothing. She spoke about the status quo and continuing need to grow the economy. She did blame the pension mess on Netanyahu. Funny didn't she vote for his reforms? Sounds a lot like her Lebanon fiasco. Blame the other guy even though you had responsibility in it.

Netanyahu basically, reiterated his calls fro lower taxes as the foundation to any economic recovery. He also stressed the need for education reform and said that he is the most qualified to lead this type of reform as he already led the economic reform that basically saved Israel from economic collapse. He also called for investing in infrastructure, roads and highways.

It's no secret that I am a fan of tax cuts and that we need much less government intrusion into our lives. Based on those principles it would seem at first glance that Netanyahu has the strongest economic policy.

Israeli's and India: Finding Oneself...You're a Jew

2008-12-01T02:31:00.001-08:00

For years, Israeli youth post-army have travelled to India and other 3rd world countries to 'find themselves.' With a bankrupt Israeli education system, the young adults decide to go search in other cultures to find their true meaning and being. Well it's a shame that it takes a terror attack in the middle of India to reinforce that we are all Jews. You may not be affiliated, or you may even want to run away from your past, but leave it to a group of terrorists to remind us all about our heritage. There in no evading being Jewish.

Rediff.com has a description of how the terrorists treated the hostages: " Asked specifically if he was talking of torture marks, he said: "It was apparent that most of the dead were tortured. What shocked me were the telltale signs showing clearly how the hostages were executed in cold blood," one doctor said.
The other doctor, who had also conducted the post-mortem of the victims, said: "Of all the bodies, the Israeli victims bore the maximum torture marks. It was clear that they were killed on the 26th itself. It was obvious that they were tied up and tortured before they were killed. It was so bad that I do not want to go over the details even in my head again," he said."

So the Jews were singled out once again.

Financial Sense for Chareidim: Mesila Gives The Tools

2008-11-28T01:18:00.000-08:00

Being in the midst of a global economic crisis has brought home the point that individuals must take a more responsible approach to their finances. Unfortunately many households are already on the brink of financial collapse and lack the necessary tools to get their financial situation in order. I'm not only talking about economic collapse, but in many cases the strain this causes on their marriage is unbearable. Broken finances=broken families. What makes matters worse is A- the need for people to 'keep up with the Joneses' and B- the unbelievable ease with with anyone can access money. Both of these factors, as well as many others, have contributed to economic hardship and a culture of debt among many in today's society. While organizations like Debtors Anonymous have done a great job, many feel that due to special circumstances, Orthodox Jews need their own organizations to work with their own constituents. Mother In Israel had a great post, that appeared on Orthonomics, about Paamonim. I'd like to mention another group that does a lot of work in the Chareidi population.

Mesila works with families to provide them with the tools necessary to live within their means. It's not just another Gemach(Kindness organization.) Mesila tries to convey responsible, Torah-based attitudes towards finances. It's obvious that Chareidi society has different needs than other groups, ( feeding large families, Bar Mitzva's, marrying off lots of children..) and many people end up loaded down with staggering amounts of debt and spend their entire day running from Gemach to Gemach, rolling their debt.

As a volunteer for the organization,I have worked with tens of cases and can attest to the fact that their methods work. I'd like to share an example:

About two years ago I started to work with a young couple with 3 children under the age of 5. The husband was learning and the wife was a teacher earning a teachers salary. Wanting the same type of lifestyle that their parents currently enjoy, they bought a car, an apartment, and of course they could only furnish the apartment with the very best furnishings. Needless to say that their total income was about $1,000 a month, had expenses of $2,500 a month and had run up debt of $50,000. They were late on mortgage payments, municipal taxes etc.. You name it and they hadn't paid it. They were constantly under threat of being cut off from all utilities. ( Believe it or not this is actually one of the easier cases I have worked on!)

Well, we got to work. The first thing they needed to do was understand their expenses, both monthly and annually. Mesila believes that you need to separate your monthly and annual expenses from your debt. If everything s mixed up then you can't get a good understanding of the problem. Once the couple actually saw their income and expense line, they actually realized that they had a big problem. The husband immediately got a job as a security guard, and the wife started to supplement her income by tutoring. Then we worked on a budget. They would have to live within their means, and have money left over to start paying down debt.

A big issue for these couples is that they have no room to breathe. What do I mean? That even though they are making more and saving more they are constantly being chased down from people wanting to be paid back. So the couple made a list of all the individuals, and companies that they owed money to, and we starting calling them to re-work the payment plans. We also arranged for about $5,000 from a Gemach to pay back the most urgent loans; those of the local grocer, butcher and fruit store. The firms we called to re-work payments were so accommodating to the couple. I see it over and over again when it comes to charity. If people think that they are giving and they feel like the money is going into a black hole, they are less inclined to give. But if a family actually has a budget and they are doing their best to live within that framework, people are much more willing to donate. The same thing holds true for these firms. Once they heard that the couple is working with Mesila, they delayed repayment for a few months, and then made terms that the couple could handle.

I don't want to go on and on with this story but needless to say, the family is doing well. They have managed to cut their debt down to about $20,000, and are living within a monthly budget. The husband still works nights as a security guard but is in school studying to be a social worker.

Many of you will say that Chareidim should get out of the Yeshiva and get a job. First of all, Mesila believes in not judging anyone. You can do whatever you want to do with your life, just make sure that your expenses are no more than your income. Also, what you need to know is that in many families the husband works and may even work multiple jobs. The wife also brings in some extra money. They are very resourceful. It's just that if you have 10 kids, even if you net $5,000 a month you are going to be in trouble.

The need is great and they are inundated with requests to help. There aren't a lot of English speaking volunteers. There are hundreds of Israeli volunteers and they have branches all over Israel and are even trying to start a branch in Lakewood.

We could use more organizations like Mesila and Paamonim to enable people to get back on their feet economically. Any of you who think you could use your experience to help others are urged to call and volunteer.

Why Should Israeli Taxpayers Bailout Billionaires?

2008-11-26T06:14:00.000-08:00

So all the analysts are in great moods as Israel joined the rest of the world in bailing out troubled companies.

According to the JPOST.com: "A further NIS 5b. will be used to set up a number of investment funds in partnership with the pension institutions (provident funds, pension funds and managers' insurance providers) for the provision of non-bank credit and to deal with the refinancing of bonds. The establishment of the private investment funds will be on the basis of tenders. Out of the NIS 5b., NIS 3b. will be allocated with immediate effect and NIS 2b. in five months time.
"The move is designed to support holders of corporate bonds when the bonds mature and to help assure companies' ability to meet their commitments," said Goshen.
"The investment funds will either refinance corporate bonds and spread the payments out, or inject capital directly into troubled companies operating in Israel to help them through the crisis."

Great. So the taxpayers are getting left bailing out lousy portfolio managers who bought corporate bonds that had little in the way of assets to back up the bond issue. Why do these managers keep their jobs? After all, if they did such a poor job in managing pension money to the extant that they need a safety net to protect soon to be pensioners, why do they keep on working? Also, we have to bail out billionaire 'Tycoons' like Lev Leviev and Yitzchak Teshuva who made highly leveraged real estate investments all over the world at the height of the bubble. Why bail them out? How much do you want to bet that they will continue to make hi risk investments knowing that if the investment crashes, the Israeli government will bail them out.

So you may ask, " why is this any different than bailing out the US auto industry?" Not that I like that either but at least I understand the case about the huge job loss that would follow if the Big 3 automakers went under. What job loss would be created in Israel if one of the tycoons went bankrupt? How many local Israeli's is Teshuva employing in his Las Vegas hotel/casino? They lost hundreds of millions of dollars investing out of Israel, employing no Israeli's and we still have to bail them out?

This is a scandal and it's a shame no one is talking about it.

4 Sites to Learn About Investing

2008-11-26T03:46:00.000-08:00

As a financial investor I am often asked about informative websites on investing. While the Internet is loaded with information for investors, here are 4 sites that will give you the information that you need. keep in mind that these cater to different knowledge level, so I am sure you will find one that suits your profile.

New Rules of Investing - this site is a really interesting view on investing 2.0. Talks about all kinds of new methods of investing, as opposed the old school way of investing.

SeekingAlpha.com- This is a site that is geared to professional investors. It is a site that aggregates financial blog content, and gives investment ideas to those in need.

CBS Marketwatch- This is a must for those who want up-to-date information on what's happening in financial markets.

Israelnewsletter.com- For those of you interested on what's going on in the Israeli economy and Israeli stocks that trade in the US, this is a very informative site.

3 Tips to Learn How to Delegate

2008-11-25T12:33:00.000-08:00

For many of us, whether in business, parenting or other facets of life, realizing that we can't do everything and that we need to delegate certain tasks is a big epiphany. In order to maximize the time in the day and do things in an efficient manner, we can't do it all. For those who have 'issues' letting go, here are 3 tips that may help make it easier for you:

1- Specialize. Define what it is that you do best, and if the task at had doesn't fit into your specialization, give it to someone else to do.

2-Take a holiday. Take a week or two off and see how everything will continue. let's face it, we aren't as important as we think and life continues, even when we are away on vacation. See who filled in for you and what tasks they did in your place, and then once you return, give each person those tasks permanently.

3- Mistakes won't kill you. Many times people who are unable to delegate are perfectionists. The reason that they can't relinquish control of certain tasks is because they are afraid that it won't be done 100%. Well in my experience, things don't really need to be finished in a perfect manner. Often times 80-90% success is more than necessary to get things done well. Delegate those tasks that really don't need to be done perfectly, this will free up a whole bunch of time.

Feel free to post you own tips on delegating.

Update: Bank of Israel Cuts rates by 0.5%

2008-11-24T11:55:00.000-08:00

The Bank of Israel(BOI) has surprised market players by lowering rates by 0.5% down to 2.5%. This is the lowest interest rate level ever in Israeli history. This means that you will pay less on overdrafts, and conceptually, get better loan terms at your bank. Whether the banks start granting loans is anyone's guess. On the other hand interest that you will receive on your bank deposits or on Israeli government bonds will drop.

The BOI must feel that with limited inflation risk, and the economy showing signs of zero growth, they need to do whatever it takes in order to jump start the economy. Now if the governement would only cut taxes!

Great Day For Israeli Biotech as Johnson and Johnson Buys Omrix

2008-11-24T08:34:00.000-08:00

With all the bad news being reported about the state of the Israeli economy, it was great to hear the US giant Johnson & Johnson (NYSE: JNJ) has purchased the Israeli Biological sealant maker Omrix Biopharmaceuticals (NASDAQ:OMRI) for $438 million. It just goes to show that Israeli ingenuity is alive and well.

Johnson & Johnson company group chairman Alex Gorsky said, "Our partnership with Omrix has already expanded our capacity to provide innovative, next generation products that raise the standard of surgical care. We believe this transaction will further enhance our efforts to bring new, science-based products to patients and the healthcare professionals who treat them."

It just goes to show that large multi-national companies will continue to look to Israel fro their R&D, instead of doing it in house where it is much cheaper. With global markets reeling, there has been very little in the way of M&A( mergers and acquisitions). The fact that an Israeli firm was acquired is truly something to be proud of.

3 Money Saving Tips

2008-11-23T11:45:00.000-08:00

With everyone worried about a global economic slowdown, and consumers facing lower disposable income, saving money will be key to helping people get through these tough times. Here are 3 tips that you can save money. Feel free to comment and share with others your tips on saving money.

1- Stick to the shopping list. Before you go to the supermarket, make a thorough list of everything you need. Then when you are shopping, only buy what's on the list. The items on sale that are calling out to you to buy them need to be avoided if you don't need them now. Even if you think you will have a use for the item in a couple of months, forget about it. It's a question of current cash flow. You can't spend what you don't have.

2- Leave the car at home. Even though gas prices have dropped dramatically over the last 4 months, if you are able to cut out one tank refill a month you will have a big savings. Instead of taking the car to the neighborhood grocery or even to work, try walking. Not only will you be physically fit but you will be fiscally fit as well.

3- At restaurant drink water. If you treat your family to a dinner out at a restaurant, order water and forgo the pop or soda. A family of five can save about $10 on drinks just by ordering water.

Drop in Israeli Poverty: Experts Say It's Bad

2008-11-23T05:58:00.001-08:00

Surprise, Surprise. A strong economy and low unemployment did more to lower poverty in Israel than years and years of welfare payments. Critics have continued to hammer at PM wannabe Bibi Netanyahu's economic policies, but once again we have hard evidence that they work. While Netanyahu was slammed for cutting welfare and other transfer payments to the poor, and said that the best way to get them moving upward economically was to cut taxes and produce a strong economy. Strong job growth would go much further in alleviating poverty than continued transfer payments.

Well the so-called 'protectors of the poor' cried and cried saying that we need more social justice and we need to increase child allowance payments, and increase unemployment benefits, otherwise we will have even larger poverty.

Wrong! It always amazes me that these elitists are always wrong. In today's eagerly awaited report on poverty, we see the number of poor declining. How could that be? Here's a thought: lower unemployment, meaning that some of the poor actually got jobs.

According to the Jpost: "According to the report, the economic quality of life for families across Israel improved from 2006 to 2007 meaning that in 2007, economic growth managed to reach the lower-income sector of society. "

Now the experts are warning about a return to higher poverty rates in '09 due to the economic slowdown. That may very well happen, but the solution is not to expand unemployment benefits. The solution is to cut taxes and encourage private sector economic expansion, as they are the ones who will create real jobs.

Can You Afford Your Child’s Wedding?

2008-11-22T09:33:00.000-08:00

Over the past few months, I have received countless phone calls and held innumerable meetings with parents trying to pay for their children’s weddings. Instead of enjoying the fact that their children are about to start building homes and families of their own, many parents spend a lot of time worrying about how they will be able to pay for the wedding. In many cases, the only way that the parents can afford to make a wedding is to spend far more money than they actually have, leading them into serious debt, or in a few cases, near-bankruptcy. This does not only apply to parents that barely scrape by on a monthly basis. Plenty of individuals who have saved over the years, or have received an inheritance or some type of gift worth anywhere from $50,000 to $140,000 are often in the same position. For example, one person with whom I met recently had $90,000 set aside for making a wedding. However, she is now worried that this would not be enough to pay for a good shidduch for her daughter. Another client told me that his daughter has been dreaming of her wedding ever since she was a little girl, and she doesn’t want to skimp on anything. She wants to buy her own dress, have the most beautiful flowers and the biggest band … etc. The only problem is that the family is still financially reeling from the last wedding that they made, six months ago.

I will not use this column to state my personal opinion of the current system. What I think about it is irrelevant. It goes without saying that these important issues should be handled by the Gedolei Yisrael. However, I would like to provide a few tips to potentially ease the financial burden on anyone who is about to make a wedding. Keep in mind that this isn’t some magic formula which will make you suddenly able to afford the wedding and everything else that goes along with it. However, it may help you to get better organized and save some money.

Make a List
When planning a wedding, the first thing that parents need to do is make a list. In one column, write down how much you are able to realistically give to the new couple. In another, make a list of all the possible expenses that can arise from the actual wedding, such as photographers, flowers, chassan and kallah gifts, hall rental, etc…. If it’s the first wedding that you have made, it may be a good idea to speak to friends who have already gone through this process. Next to the type of expense, write down the estimated cost. Then, in a third column, list the expenses for the couple’s new home, including buying/renting an apartment, linens, appliances, and other necessities. It’s important to differentiate between these two types of expenses because it allows you to prioritize where your limited funds can go.

Instead of simply coming up with a certain budget for the wedding and using it without much thought, creating this list will give you more control of each spending decision. It can also eliminate certain less vital expenses, distributing that money toward the most important needs. In the long run, this type of organization should help you save money.

Buy Second Hand
With the current shidduch system, the phrase, “can’t afford it, don’t buy it,” doesn’t seem to apply. However, one thing that can be done is to buy second hand. The new couple doesn’t need a brand new Shabbos table or bookshelves. Used furniture that is in good condition should be sufficient. A few years down the road, when the couple has the means to upgrade, let them pay for their new furniture themselves. Thousands of shekels can be saved if practical decisions are made with regard to what is purchased for the couple.

Since we can’t necessarily change the current system, it is worthwhile planning accordingly and trying to keep all expenses within the initial budget. Then you can sit back and enjoy your simcha and the nachas that the newly married couple will give you.

May they build a Bayis Neeman B’Yisrael.

Obama Advisors Temper Expectations

2008-11-21T01:42:00.000-08:00

According to a CBS2Chicago report, advisers to Pres. elect Barack Obama are worried that expectations are too high and are working to try and lower them. "President-elect Barack Obama and his inner circle fear that some voters expect him to turn around the economy, wind down the war in Iraq and, perhaps, cure cancer -- all by the Fourth of July."

Well I may be mistaken, but wasn't Obama the one who raised these expectations? He has been going around for 2 years, promising to 'fix what's broken',' make history' and ' change the world.' Heck he even has a plan how to crown a college football national champion.With rhetoric like this who needs expectations?

He got elected because he convinced enough people that he can fix everything. He is like a real life Schneider- from One day at a Time. Now his handlers are saying he can't actually do this, and the country better be prepared for this fact.

A bit disingenuous, don't you think?

3 Uses For Duct Tape

2008-11-20T07:50:00.000-08:00

Kudos to my sister DS for sending me a great article about a rowdy airline passenger who was finally subdued with duct tape.

You see in our house growing up my father was a huge believer in duct tape. It was like aspirin. Any problem you may have had or have, somehow or someway could be taken care of with duct tape.

As a public service to those who didn't have such an upbringing, here are 3 uses for duct tape that you may not be aware of.

1- Wart removal. If you have a wart, place a piece of duct tape on top and in a few days the wart will disappear.

2- Hand bags and wallets. DS tells me that at the Pike Place market in Seattle artists make handbags and wallets out of colored duct tape.

3-Use it as a musical instrument.

Feel free to add some ideas as well.

21.7 Billion Shekel: Are You Kidding Me?

2008-11-19T02:52:00.000-08:00

How do you like that. After being reassured by every economic leader in the country that the Israeli economy is a sea of tranquility and in no danger of recession, today we are treated to an economic recovery plan that comes with the price tag of 21.7 billion Shekel. I didn't think we had to 'recover' from anything.

Does anyone have an idea of where the treasury is going to come up with 21.7 billion? I have an idea, can you say higher taxes? Part of the plan calls for re-educating fired hi-tech workers and training them to be teachers. Huh? Why not give incentivize them to start new companies? Teachers? Does the treasury want to close the Israeli hi-tech industry? It makes no sense.

Funny that there is no mention of cutting our taxes, or trying to get the private sector to open new businesses. The government is planning on investing billions in order to 'create' jobs. As we are all aware the government has a hard time managing anything efficiently. How are they going to be able to manage public works projects? Just to name a few failed projects of recent memory we have, the Bridge of Strings in Jerusalem, the light-rail in Jerusalem, The bridge to nowhere in Modiin..feel free to add your favorite to the list.

Why do politicians think that they know how to spend our hard earned money better than we know how to? And why do some of us look to the government to solve our problems? Whatever happened to individual responsibility?

This economic recovery plan is a recipe for disaster, and with an election looming, the treasury will open up their purse strings in order to buy some votes. The only hope that we have is that they may have gotten a bit greedy in the plan. The plan also calls for enlistment of Hareidi boys into the IDF. This clause in itself may help shelf the plan.

Livni Cries Foul Over Partisanship

2008-11-18T07:04:00.000-08:00

Current FM and PM hopeful Tzipi" I need to get the hair out of my eyes" Livni has blasted both the Shas and Labor parties for trying to use the economic recovery plan for political gain.

According to an article in Globes, Livni said, "It is infuriating to see political parties trying to make partisan gain at the public's expense. The opposition of the Labor Party and Shas to the emergency plan demonstrates why people should not vote for sector-based parties.The opposition of the Labor Party and Shas to the emergency plan demonstrates why people should not vote for sector-based parties."

Though i hate to admit it, i agree with her that they shouldn't try to make political hay out of an economic crisis. More so spending money on welfare payments and infrastructure projects is no answer. The clear answer to help extricate Israel from an economic slowdown is by cutting taxes, and making easier for small and mid-sized businesses to actually conduct business in Israel. Along with income tax cuts, we need corporate taxes to be trimmed and we need to give small businesses large scale relief in paying Arnona (municipal tax.)

As for Livni, she complained that, "It is infuriating to see political parties trying to make partisan gain at the public's expense." I have one quick question for her. Ever hear of the Kadima party?

Jerry Yang: Better Late Than Never

2008-11-18T01:54:00.000-08:00

News that Yahoo CEO, Jerry Yang is leaving the company is welcome news for investors, albeit a decision that was too late in coming. Yang was responsible in rejecting a buyout offer from Microsoft value at over $31 per share. Yang insisted that the offer was too low and that he was going to turn Yahoo around and grow the company. Unfortunately he didn't deliver the goods and the stock is trading down at around $10. That would mean that in order to provide shareholders with the financial value that Microsoft was offering, the stock now needs to triple in value. Good luck.

The one compliment that I can give Mr. Yang is that at least now he understands that he needs to step down, and he understands that he has failed in his duty. I have seen many a CEO, be so arrogant that they can't admit their own failures and they end up bankrupting the company. Just see recent examples of Lehman Brothers and Washington Mutual bank.

Many think that his departure will open up negotiations once again with Microsoft. If so I wouldn't ecpect an offer anywhere close to the $31 offer. And who can investors thank for that? Jerry Yang!

Looking For Yummy Cookies?

2008-11-17T08:05:00.000-08:00

I try not to turn the blog into an advertisement, but someone I know pretty well (okay for full disclosure it may just be my sister-in-law) has started a business which is long overdue. She is a great baker and after lots of prodding, decided to share her delicacies with others. Her cookie platters are perfect for a simcha, Shabbos kiddush or just to nibble on with a cup of coffee- or in my case about 10 cups of coffee.

If you are sick of baking but looking for some good desserts, feel free to email Dvoras Cookie Creations. I am not just writing this to earn some family brownie (no pun intended) points, but I actually really like her cakes and cookies.

Again for full disclosure: Unfortunately, I have not received payment of ANY KIND for this post! I think I'll have another cup of coffee (hint hint.)

3 Signs That You Are Getting Old

2008-11-16T04:29:00.000-08:00

As I am busy sitting at work trying to figure out how to protect my clients money, someone made a comment about being a YUPPIE, and the youngest member of our team asked, "What's a YUPPIE?"

I guess that means that I am starting to get older. As a public service to my readers here are 3 signs that you are moving on in years:

1-You have enough kids that you need to buy a minivan
2-You can't seem to move the dial from the 80's station
3- Can you say...Colonoscopy?

Will Bad Economy + Obama= Aliyah Surge?

2008-11-15T11:26:00.000-08:00

An interesting result of the recent victory by Barack Obama and the global economic slowdown maybe a potential surge in North American Aliyah. Let's face it, if you are Jewish and you have little job security, or no longer even have a job, why stay in the US? Why not make Aliyah with Nefesh B'Nefesh?

Even though Israeli is likely to experience an economic slowdown as well, we are still talking about 1-2% growth, compared to negative growth in the US. I have many friends who were always fence sitters re: Aliyah, but they have told me that over the last month or two they have really starting thinking about taking the big step.

I have helped counsel, financially, many olim and the fact is that with some proper planning, you can actually be ahead of the game financially living in the holy land. Keep in mind that while salaries maybe lower, the cost of education is a joke compared with sending your kids to Jewish schools in the US.

Maybe now is the time for you to make Aliyah?

Seattle Seeks to Ban Public Nudity: 20 Years to Late

2008-11-13T22:00:00.000-08:00

The Seattle Times is reporting that the city of Seattle is considering making public nudity a criminal trespass offense. " Here is a message from Seattle Parks and Recreation to all you nature lovers: Cover up those rear ends or face a possible criminal-trespass prosecution.
The proposed rule will have a public hearing Jan. 8, and parks commissioners will make a recommendation to Parks Superintendent Tim Gallagher two weeks later."

That means for those who enjoy participating in naked bicycle rides, volleyball games in the park, or skinny dipping at one of the city beaches, better bring along a pair of shorts and a shirt, or the term 'buck-naked' will have a more costly meaning.

For me this proposed rule comes 22 years too late. You see on a beautiful spring day back when I was in high school we went up to Volunteer park to play baseball for our gym class. I took my regular position in left field, and the batter smacked a ball well over my head and it rolled into some bushes. When I climbed through the bushes to retrieve the ball, I was met by a man, naked, playing the flute for another man, also naked.

Needless to say, that's a vision that I could have done without, and has lingered in the back of my mind for more than 2 decades.

While this proposed law comes too late for me, I guess this is a case of better late than never.

Tzipi Livni: Maybe You Should Take Some Blame

2008-11-13T08:09:00.000-08:00

So current FM and PM hopeful Tzipi" I need to get the hair out of my eyes" Livni is out complaining about arms smuggling into Lebanon. According to the JPost.com: "The continued weapons smuggling from Syria into Lebanon is a flagrant violation of UN Security Council resolutions, and the countries involved must be held responsible, Foreign Minister Tzipi Livni told UN Secretary General Ban Ki-Moon on Wednesday. According to a statement issued by the Foreign Ministry, Livni told the UN chief that the arms smuggling endangers the entire region, and its continuation contradicts Syrian commitments made to the UN regarding a cessation of such activity. "

Now correct me if I'm wrong but doesn't Livni continue to say that her push to pass UN Security Council Resolution 1701, was her crowning diplomatic achievement. That fact that none of Israel's enemies have upheld this resolution and continue fortifying southern Lebanon in anticipation of the next war, only bothers Livni because it's a 'flagrant violation of the resolution." Maybe she should be bothered by the fact that she made a terrible mistake, and this resolution is disaster for Israel.

Livni keeps taking pride in the resolution. Maybe it's time she stop blaming our enemies and accept some blame for her failed diplomatic 'achievement.' Maybe Livni should be held responsible.

Municipal Election: Classic Story

2008-11-13T02:56:00.000-08:00

Rewind 72 hours, the day before Israel's municipal election day. The campaign was in full gear. Candidates were spending every last second courting each and every vote. Everywhere you turned in Jerusalem was full of people handing out fliers about this candidate and why you shouldn't vote for the other candidate. I am sure that the same scenario played out in countless cities all over the country. Even former PM and current PM candidate Benjamin Netanyahu became my personal friend calling me 4 times on both my cell and house phone. Bibi has my cell number. Cool! Oh you mean he called everyone asking them to vote Likud, and it was only a tape of him? Bummer, I thought we were bonding.

Then there was Shachar Rubin. Who? No, not Shachar Pe'er the Israeli tennis star, Shachar Rubin. My dear wife starting getting phone calls from supporters of Shachar Rubin. The first call went something like this." Hello Mrs. Katsman, we just want to know that we can count on you to vote for Shachar. How many others in your household can we count on to vote for Shachar." To which my wife answered, " Who is Shachar?"

The she got another call on her cellphone a few hours later, reminding her to vote for Shachar.
On Tuesday morning as we were literally walking into our polling station to vote, she got a text message reminding her to vote for Shachar Rubin. the message said, " Shachar Rubin requests from you to vote today for the "RAK" party(Hebrew letters). The day is important for all of us and every vote counts." Then yesterday she got a thank you text message, thanking her for voting for Shachar and his 'Lev' party.

After speaking to a bunch of friends, including election maven Steve, and checking the election results, no one had ever heard of or new anything about our Shachar. Well last night my wife decided on doing a Google search on our friend. It turns out that he is the deputy mayor of............. Ness Tziona. We live in Jerusalem, and my wife has never set foot in Ness Tziona.

And the good news.............. Shachar is again deputry mayor!!!!!!!!!!

A Question to Religious Zionists

2008-11-12T01:36:00.000-08:00

Now that the Jerusalem elections are over and Nir Barkat has been elected as mayor with the help and support of an overwhelming majority of religious Zionists, my question to these religious Zionists(RZ) is why did you vote for him?

Almost all my RZ friends ( I am also a crotched kippa wearer) voted for Barkat because he was secular and they shuddered at the thought of voting for a Chareidi candidate. Why? What is behind this fear of the Chareidim? As someone who 1- has a lot of Chareidi family and 2-does a lot of volunteer work in the Chareidi sector, there is nothing to be afraid of. They are just like us. They face the same issues of raising their families, education issues, etc. that we do. So many will respond 'yeh, but they don't work and don't serve in the army.' Well the fact is that many of them do work, and last time I was in North Tel-Aviv there were a ton of army aged teenagers loitering around doing nothing but sipping lattes. After all it's become fashionable for secular Israeli kids not to serve in the IDF. Additionally, it has become widespread for RZ kids to stay in Yeshiva and keep on learning after Hesder is over being supported by their parents.

Correct me if I'm wrong but for religious Jews of all stripes the army isn't the end all. I always thought that the keeping Torah and Mitzvos and not wanting to give away the Land of Israel were the most important aspects of our religion. The fact is that because we share a common Torah, we have much more in common with Chariedim than we do with the secular.

Anyone who knows me knows that I am not a big fan of 'can't we all just get along,' but in this case it just kills me that we can't. We have a common base (i.e. the Torah) that should automatically bring us together. Take a minute and speak with a Chareidi, and I'll bet you will find that he won't bite, and that you have a lot in common. Much more in common that you have with someone from Ramat Aviv Gimmel.

US Dollar Surges on Bank of Israel Rate Cut

2008-11-11T11:24:00.000-08:00

In a surprise move, Bank of Israel governor Stanley Fischer cut interest rates to 3%. Citing increasing challenges to the local economy and even a potential recession (maybe he read some of my posts!), Fischer made the unexpected move in order to help stem the economic slide.

With analysts lowering their '09 growth forecasts, Fischer who has until last week remained unrealistically optimistic, appears to have thrown in the towel an admitted that things aren't all that rosy, and is trying to add liquidity to the Israeli banking system to try and prevent the same type of credit crisis gripping the global banking system .

As a result of the cut, the US Dollar soared almost 2% against the Shekel. For consumers the rate cut is helpful. It will mean lower rates that you need to pay on overdraft, lower rates for loans and other types of credit. On the other hand, investors in Israeli bonds will receive less interest on their investment.

GM: Forget The Bailout and File for Chapter 11

2008-11-11T02:32:00.000-08:00

Much has been made of the serious financial problems facing the big 3 US automakers. With many calling for a quick and expensive government bailout of the industry as the only way to save the jobs of millions and keep the industry alive in the US, why doesn't anyone propose chapter 11 as a solution? The whole point of chapter 11 bankruptcy is to allow a company to reorganize without creditors banging down the door demanding loan repayment. If you read press accounts of this story you would think that bankruptcy would automatically lead to closing of the companies. Nothing could be further from the truth. Companies continue producing and selling products during this process. While there may be some job loss during this period of reorganization, it's going to happen anyway regardless of a bailout or not. The only way these companies will survive is through serious cost cutting and renegotiating union deals ( it's the unions which are one of the major causes of this problem.)

What I think is really funny is that there are many who think that the government can come up with a plan to make the automakers viable again. According to an article in the IHT: "On Friday, Obama said he would instruct his economic team, once he chooses it, to devise a long-range plan for helping the auto industry recover in a way that is part of an energy and environmental policy to reduce reliance on foreign oil and address climate change."

If anyone thinks that the government can run a large business efficiently and profitably, I have a bridge to sell you.

If you want to save the big 3 US automakers, let them file Chapter 11, otherwise it's going to be a black hole of more and more bailout money going to keep them alive.

3 Investment Banker Jokes

2008-11-10T11:53:00.000-08:00

As Wall Street crashed, many investment bankers became the butt of jokes. Most of you have probably received most of these jokes via email over the last few weeks, but for those who haven't, it'll probably produce a small chuckle. Here are 3 of the better ones:

1- What's the difference between an investment banker and a pigeon? A pigeon can still leave a deposit on a Ferrari.

2- What's the difference between an investment banker and a large pizza? The pizza can still feed a family of 4.

3- What does a hedge fund manager with no hedge fund to manage say? Would you like fries with that sir?

Okay, so they aren't so funny I'll admit. Do you have anything better? If so feel free to post it as a comment and we can all be the judge if it's funny or not.

Obama and Unity: Why?

2008-11-10T07:01:00.000-08:00

Much was made during the recent US presidential campaign about the need for unity and to 'reach across the aisle.' My question is why is this type of unity needed? Isn't it anti democratic? Isn't disagreement in the political system essential?

I always felt that in a democratic system of government, both sides need to argue their respective ideas and policies and try and convince the other side that their opinion is right. Then they vote and the majority wins. Not that thy can run roughshod over the minority( De Tocqueville's concept of tyranny of the majority.)

These constant calls for unity sound to me like a call for one side to give up their beliefs. Isn't it obvious that the calls for unity are meant to unify around one set of ideals, in this case, those of Pres. elect Obamas

Unity may sound good, but I am not sure how good it is for democracy.

Fake An Opponents Death to Become Mayor?

2008-11-10T02:06:00.000-08:00

No one has ever accused Israeli politicians of being a classy lot. The do anything, say anything approach to be elected is a big reason that politicians are not held in such high esteem. According to a report in the Jpost.com, we may have reached a new low. Apparently a candidate for Mayor in BeerSheeba decided to fake his opponents death. " Fake death notices announcing the passing of BeerSheeba's Mayor Yaakov Turner were put up in several spots around the city a day before the municipal elections. City inspectors have removed the offensive posters.
Turner's campaign pointed a finger at one of the other candidates running against the mayor, who himself reacted somewhat sarcastically, saying the rumors of his death were "premature".

All I can say is that this is just sick and classless. If you can't win on issues then accept defeat with class, ala John McCain. Faking a death to get a few more votes seems beyond the pale. All I hope is that those who posted the signs don't bring an Ayin Hara upon themselves.

Making Aliyah and Parenting

2008-11-09T08:06:00.000-08:00

There is a great article over at Aish.com written by Tara Eliwatt, about parenting and Aliyah. She describes the ups and downs of making Aliyah with small children who have to try an integrate into the Israeli school system. Her Hebrew is non-existent and her kids are not much more fluent.

In an emotional moment for any parent she says, "I don't want to leave him. I want to sit with him and talk to him and tell all the boys at the bus stop, "Hey -- you've got to get to know this kid. He's so bright and creative, and lots of fun to be with! He's sensitive and thoughtful. He would be a great friend to have." But they don't speak English, and my Hebrew is poor at best. Instead, I drive the car slowly away, peering into the rear view window to see if he follows my advice.
I can't blame him for not being assertive at the bus stop. I'm afraid to call Israeli mothers on the phone to arrange play dates for my kids. What if they don't understand me? What if they don't want their child playing with an American?"

Organizations that promote Aliyah, like Nefesh B'Nefesh, have done such a great job in helping olim get acclimated in Israel, whether it be helping finding a job, a suitable community, and/or easing bureaucratic red tape. Because of NBN's success, we may forget that a major issue that is beyond the scope of any organization is helping children make new friends, and get comfortable in their new surroundings.

Eliwatt says that a well placed ice-cream cone, or a trip to the park can help ease the transition as it helps bring the family closer and remind all that they are in this together.

She concludes, "But at least a few times a week, (before I've lost my patience, raised my voice or done some other parenting faux pas), my daughter has looked at me with a sweet smile on her face, asking, "Why are you such a good mommy?"
I don't recall ever hearing that question in America.
There is a sense in the family that "we're all in this together." And perhaps, in witnessing our children slowly acclimate to their new life, we are inspired to work harder to adapt and to accept the changes in our own lives."

A must read article for veteran olim, or those contemplating calling NBN and starting the journey to their own Aliyah.

And Now Fischer is Worried?

2008-11-09T05:15:00.000-08:00

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.

Israeli Election Update: Netanyahu Unifies Party

2008-11-09T01:57:00.000-08:00

With the focus now off the US presidential elections, the Israeli elections for prime minister now take center stage. With about 3 months left until the vote, Likud head and former PM Benjamin Netanyahu has managed confound analysts by actually unifying his center-right Likud party. The big knock against Netanyahu in the past is that he isn't exactly a 'people-person' and alienates those close to him.

Well news over the last few days that former highly regraded Likud members such as Benny Begin( son of former PM Menachem Begin) as well as Dan Meridor have rejoined the Likud party has given Netanyahu a big boost.

If Netanyahu can succeed in convincing the electorate that he can actually get along and not 'tick-off' everyone, than his chances of a large victory will be greatly enhanced.

Top 5 Annoying Phrases

2008-11-09T01:45:00.000-08:00

The New York Post has an article today about the 10 top 'Trite Fright' phrases that people use, which happen to be really annoying. The article sights examples like: "with all due respect," "absolutely," "it's a nightmare"

As a public service I will give my top 5 most annoying phrases:
5- Change we can believe in
4-Take your game to the next level
3-To tell you the truth
2- You need to have a long-term perspective when it comes to investing
1- Yes, we can!

Feel free to post you own favorites

Blogging As a Business Just Got Tougher

2008-11-08T22:53:00.000-08:00

I have many friends who tell me that blogging is a great way to earn some extra money.All you need to do is set up a blog, throw up some ads and you will make a few thousand dollars a month.

If it was only that easy. Not only do you need to provide content that is of interest to a reader but the whole online ad business is slowing down.

I came across a great post over at New Rules of Investing.com, the writer speaks about how the monetization of ads is becoming tougher. The article says, " monetization of ads getting tougher as ad model struggle: This issue is facing every firm reliant on ads for revenues. TheStreet.com’s CFO Eric Ashman said, “it is safe to say that we have very little visibility into online ad spend for the rest of the year or for 2009.” While online has held up better than offline, I think this is an important issue. I’ve said before that firms like SeekingAlpha have created new content models but not revenue models. Constrained by pageview growth and CPMs, these firms are no different from the predecessors in terms of generating advertising revenues."

The fact is that for a very small blog or online content business, on line ads can still be a nice little source of income. the real problem becomes how to scale. The aforementioned article mentions Seeking Alpha. Here you have a great example of the problem. Once the decision to become a large firm is taken, and large amount of expenses need to be taken in order to scale, the question becomes how to scale revenues?

I don't have an answer but maybe it pays to stay small in size, and avoid the problems of trying to scale the business. just a thought.

2 Tips On Hosting Large Meals

2008-11-08T10:38:00.000-08:00

We just finished serving lunch to 17 people, 12 of those were guests. While the conversation never got stale, and all the guests seemed to have a good time, nonetheless for the hosts, it's always a bit stressful to host a ton of people. Here are 2 tips to help all you hosts, deal with large meals.
1- Don't go crazy with food- guests will eat what's served, not more and not less. Don't feel that you need to add extra side dishes or extra main courses, just because you have a few more people at your table than normal. So many times we have hosted large meals and cooked and cooked only to have tons of leftovers.

2-Relax and let the conversation flow. With such a large amount of people with various backgrounds, it isn't too hard for the conversation to flow. There is no need to force the issue. Just relax and be happy knowing that your guests are having a good time.

Bon Apetit!

Worried About Gun Control: Buy Your Guns Now

2008-11-07T06:16:00.000-08:00

Much has been made about President-elect Barack Obama's views on gun control. During the campaign he mentioned more than once that he respects the 2nd amendment and the right to bear arms. Apparently many would be gun owners aren't convinced. Gun sales have been surging recently as customers decide that they better buy their guns before Obama takes office and tries to impose all kinds of limits on the 2nd amendment.

According to a story in the New York Times: " Sales of handguns, rifles and ammunition have surged in the last week, according to gun store owners around the nation who describe a wave of buyers concerned that an Obama administration will curtail their right to bear arms.
“He’s a gun-snatcher,” said Jim Pruett, owner of Jim Pruett’s Guns and Ammo in northwest Houston, which was packed with shoppers on Thursday."

The NY Times report continues: " In Colorado, would-be gun buyers set a one-day record last Saturday with the highest number of background check requests in a 24-hour period, according to figures from the Colorado Bureau of Investigation.
“We’re not really sure who is promoting the concept that a change in federal administrations might affect firearms possession rights,” said an agency spokesman, Lance Clem, “but we do know that it’s increased business considerably.”

Clearly gun store owners are stoking the flames of fear in order to increase sales. The question is Obama will keep his campaign pledge or whether he will move to the far left and justify the fears of those running to buy guns now.

Spitzer Gets Lucky....Again

2008-11-07T04:01:00.001-08:00

I guess it pays to be a politician. Apparently any type of crime that regular people would be prosecuted for, just isn't serious enough for a politician. Former New York Governor Spitzer, was let off the hook(er) yesterday. According to the NY Post: " I acknowledge and accept responsibility for the conduct it disclosed," he said of the federal investigation. "I resigned my position as governor because I recognized that conduct was unworthy of an elected official."
US Attorney Michael Garcia said Spitzer "has acknowledged to this office that he was a client of, and made payments to, the Emperors Club VIP," an international prostitution ring busted in March.

Just a reminder, Spitzer was busted after the news story broke that he paid $1,000 an hour for sexcapades with call girl Ashley Dupre at the Mayflower Hotel in Washington.

Funny that other people involved in the prostitution ring are doing jail time. The Post says: "Aside from the Emperors Club, Spitzer has also been linked to an escort service called Wicked Models. Its former ringleader, Kristin Davis, said last month that Spitzer was a client, but said she never personally serviced him. Davis has pleaded guilty in Manhattan Supreme Court to promoting prostitution. "

I guess there is a difference between the promoter and the promoted.

Anyway you look at it, Spitzer seems to have gotten lucky once again!

Ahmadinejad Congratulates Obama: Here We Go

2008-11-06T12:38:00.000-08:00

VP elect Joe Biden warned us a month ago that someone would try and test President Obama within 6 months of his taking power. Well how right he was. According to the Jerusalem Post "Iranian President Mahmoud Ahmadinejad on Thursday congratulated Barack Obama on his election win - the first time an Iranian leader has offered such wishes to a US president-elect since the 1979 Islamic Revolution." Who would have thought that Ahmadinejad is such a polite and gracious leader.

The article continues, " In his message to Obama Thursday, Ahmadinejad went on to say that "nations of the world" expect changes from Obama - mostly that he will change current US foreign policy.
That policy, the note claimed, was "based on warmongering, occupation, bullying, deception and humiliation, as well as discrimination and unfair relations" and has led to "hatred of all nations and majority of governments toward the US leaders."
Ahmadinejad also said that Obama is expected to replace such a policy with "an approach based on justice and respect, as well as lack of intervention in the affairs of others."

Clearly the Iranian leader is setting up Obama to engage in diplomacy, his greatest stalling tactic. Let's see if Obama will succumb to the Iranian leaders charm or whether he will show some backbone and stand strong.

Credit Crunch and Israeli Banks

2008-11-06T10:27:00.000-08:00

Stanley Fischer, Governor of the Bank of Israel, spoke yesterday on the stability of the Israeli banking system. Fischer, along with many other public figures has gone out of his way to keep telling the public that the local banking system is sound. While scaring the public about bank failures is irresponsible, don’t Israelis deserve to be told the truth about what is going on? How about a little honesty from our leaders.

If everything is so rosy, then why does the BOI have a plan to stream money to the local banks in the event of a credit freeze? Is this prudent planning, or cause for worry?

As reported in Globes, Fischer spoke about how disciplined the local Israeli banks have been. “In addition, Israel’s banks had no sub-prime exposure. “Israel’s banks said ‘No’ to this paper,” said Fischer.”

Really? That’s not how I remember it. Bank in March Bank Hapoalim wrote off hundreds of millions of dollars. According to Reuters, “Hapoalim, whose shares have slid some 30 percent so far in 2008, said it posted impairments of 1.18 billion shekels, or $334 million, for its U.S. asset-backed securities portfolio. It had previously said it would write off around $300 million in the fourth quarter due to a decline in the value of its U.S. structured investment vehicle (SIV) holdings.” Other local banks also wrote off smaller amounts.

In the aforementioned Globes article Fischer also said, “Also the banks applied responsible credit policies.” Really? Is loaning money to the wealthiest ten families so that they can spend billions of dollars on international real estate, at the height of the real estate bubble, called responsible lending?

Shouldn’t the central bank head come clean with the Israeli public?

Off We Go!

2008-11-06T07:08:00.001-08:00

Welcome to my Blog. At I'm Right...You're Wrong you will hear straight talking, rational thinking on a variety of issues. From politics to matchmaking, sports to cooking, this is the place to come to find out the real truth. Hang with me as I am new to the world of blogging. At one point in my life I had a midnight radio show which was quite popular with insomniacs( Don't tell anyone that it was pirate radio! Can you say Christian Slater in Pump up the Volume). They used to tell me that I had the perfect face for radio!

Stay tuned for some clear and concise analysis and thought provoking content, and with a little luck you may even crack a smile.

Wish me luck.