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From - Israel's Financial and Defense Expert
Short of the year 2010- Israeli banks, currency and government bonds
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Special report: Israel's high end real estate market already crashing
Short of the year 2010- Israeli banks, currency and government bonds
Stanley, the father of modern central bank, among his former students: Lawrence Summers, director of US President Barack Obama's National Economic Council; and Federal Reserve Chairman Ben S. Bernanke, whom Fischer advised on Bernanke's graduate thesis in 1979. (see:When Stanley Fischer speaks, Ben Bernanke listens ) is now head of Israel's head of the central bank
His comments have showed that Bernanke's guru- Stanley Fisher has learned nothing says there is no housing bubble. By lowering interest rates to record low he has cause Israel's economy to repeat exactly the American experience in the years 2002-2006, while printing money, buying dollar and causing the country's money supply to go up dramatically (see: Israel's money supply explodes )
As a result of his actions, a giant housing bubble has emerged (see: Fisher's bubble still inflating- Israel ranked strongest real estate market) and the stock market is 10% below it's all time high with bank stocks going up 3 times from the lows. (see:Israeli banking stocks up like crazy financial crisis long forgotten housing bubble ignored )
With nothing left to inflate in United States, central banks have succeeded to inflate bubble in all the place where they where not fully bubbled before. Because interest rates in Israel where not at 1% in 2002(actually at double digits) The crazy casino style fiat toilet paper money scheme could work one more time(same thing is true as for Canada, China, Brazil and India)
So the big next crisis will be outside the U.S, with the key being inflation and dollar liquidity. with all the world depending and helicopter's Ben dollar falling around on all who is too big to fail, a short squeeze in the dollar(like what is maybe happening now with the potential collapse of the Euro) will bring all the "emerging world" to it's knees. Anther thing that could happen, with or without a dollar rally is a pickup in inflation which will force those central banks to tighten. In India and in China it seems like it is happening and in Israel it is happening for sure.
When the bubble in Israel pops CAPITAL WILL FLOW OUT OF ISRAEL AND FORCE FISHER TO RAISE RATES, NOT LOWER THEM LIKE BERNANKE.
So a possible combined short on the Israeli government bond market, Israeli bank's, and the Israeli Banking index will probably make the short of the year.
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His comments have showed that Bernanke's guru- Stanley Fisher has learned nothing says there is no housing bubble. By lowering interest rates to record low he has cause Israel's economy to repeat exactly the American experience in the years 2002-2006, while printing money, buying dollar and causing the country's money supply to go up dramatically (see: Israel's money supply explodes )
As a result of his actions, a giant housing bubble has emerged (see: Fisher's bubble still inflating- Israel ranked strongest real estate market) and the stock market is 10% below it's all time high with bank stocks going up 3 times from the lows. (see:Israeli banking stocks up like crazy financial crisis long forgotten housing bubble ignored )
With nothing left to inflate in United States, central banks have succeeded to inflate bubble in all the place where they where not fully bubbled before. Because interest rates in Israel where not at 1% in 2002(actually at double digits) The crazy casino style fiat toilet paper money scheme could work one more time(same thing is true as for Canada, China, Brazil and India)
So the big next crisis will be outside the U.S, with the key being inflation and dollar liquidity. with all the world depending and helicopter's Ben dollar falling around on all who is too big to fail, a short squeeze in the dollar(like what is maybe happening now with the potential collapse of the Euro) will bring all the "emerging world" to it's knees. Anther thing that could happen, with or without a dollar rally is a pickup in inflation which will force those central banks to tighten. In India and in China it seems like it is happening and in Israel it is happening for sure.
When the bubble in Israel pops CAPITAL WILL FLOW OUT OF ISRAEL AND FORCE FISHER TO RAISE RATES, NOT LOWER THEM LIKE BERNANKE.
So a possible combined short on the Israeli government bond market, Israeli bank's, and the Israeli Banking index will probably make the short of the year.
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.
Special report: Israel's high end real estate market already crashing
More news confirming are belief that the real estate market in Israel is near a turning point (see: Short of the year 2010- Israeli banks, currency an... )
An early government report showed that Housing prices fall in Israel for the first time in more than 6 years
The second largest newspaper in Israel reported today:
last few months will not be remembered as one of the best of Israel’s most luxurious real estate area – “herzelia pituah”. In the last two there haven’t been almost any deal signed, as foreigners have left the market a year ago and prices have reached a level that locals can’t afford. Many property owners believed that the foreign buyers will come after Christmas, but they did not..
The main problem in the real estate market of herzelia pituah is a glut of inventory and the belief that prices will soon go up which is causing a gap of almost 20 percent between the price homeowners are demanding and the price buyers are willing to sell. Many properties have been left on the market for months now.
As an example in “Ha nasiee” street a large villa which was put on the market for 6.5 million ILS, isn’t being sold for even 5 million.
“We were hoping that in Hanukah we will French, Belgium, and English buyers like we saw in the last decade, but it didn’t happen.”
There is a strong feeling that the sellers are not connected to reality, some are asking over 2 million dollars for old houses that will be needed to be taken down and rebuilt.”
At the peak of the market houses where out for a month or two and then bought and now we have houses that on sale for more than a year.
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An early government report showed that Housing prices fall in Israel for the first time in more than 6 years
The second largest newspaper in Israel reported today:
last few months will not be remembered as one of the best of Israel’s most luxurious real estate area – “herzelia pituah”. In the last two there haven’t been almost any deal signed, as foreigners have left the market a year ago and prices have reached a level that locals can’t afford. Many property owners believed that the foreign buyers will come after Christmas, but they did not..
The main problem in the real estate market of herzelia pituah is a glut of inventory and the belief that prices will soon go up which is causing a gap of almost 20 percent between the price homeowners are demanding and the price buyers are willing to sell. Many properties have been left on the market for months now.
As an example in “Ha nasiee” street a large villa which was put on the market for 6.5 million ILS, isn’t being sold for even 5 million.
“We were hoping that in Hanukah we will French, Belgium, and English buyers like we saw in the last decade, but it didn’t happen.”
There is a strong feeling that the sellers are not connected to reality, some are asking over 2 million dollars for old houses that will be needed to be taken down and rebuilt.”
At the peak of the market houses where out for a month or two and then bought and now we have houses that on sale for more than a year.
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