Archives for February, 2008

ריבית בנק ישראל לחודש מארס 2008 תרד ב-0.5 נקודות אחוז לרמה של 3.75%

– 25.2.2008 – ריבית בנק ישראל לחודש מארס 2008 תרד ב-0.5 נקודות אחוז לרמה של 3.75% Wow! The interest is down again! What happened to all the talk at the Bank of Israel that nothing can be done to support the weak dollar and Israel needs to concentrate only on its economy and we can’t be a factor in worldwide phenomenem. So the Bank of Israel found some mumbo-jumbo reason and tomorrow the exchange rate will be 3.7 again. Remember those predictions of an inflation dip next month? Forget them. I have said this many times, in fact just last week I reiterated it. Every thing is cyclic. The dollar can’t remain at 3.5 NIS for more than a month or so. It is...
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economic news

The Dollar, Inflation and our customers

Here is the latest economic forecast from IDB: Israel Discount Bank Ltd.According to this report, inflation is just breaking even because of the very low dollar offsetting rising prices in everything else.Inflation is high. For most Israeli mortgages, this means a higher debt load and that your payments will become increasingly higher near the end of your loan. In the short-term it is mainly unnoticable. Ironically, the only good way to get out of this mess is out of our hands: when inflation gets much worse, rates will rise, and our clients will be able to refinance their loans without paying any penalties (contact us for more information).   What about those paying and living in Dollars? What happens to them? In the short-term...
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inflation

Inflation Heats Up in January

US inflation for January is 0.4%: Inflation Heats Up in January The US is now on a 4.3% 12-month inflation rate. Later this year, the US is giving cash tax rebates to most of its citizens. All of that spare cash sounds like a lot of liquidity to me, and higher inflation later on. What will happen with the inflation in Israel? In other news, we have been hearing interesting things from our bank contacts. The banks are rejecting a greater percentage of loan applications and applying more scrutiny to the ones they approve. The banks are becoming more competitive for customers. Now more than ever it is essential to know what you are doing before you make your loan request. Consult your favorite...
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No inflation in January

Read the official Central Bureau of Statistics release. If you read the CBS you can see the breakdow. Housing and fuel were down as a result of the strong shekel. Food prices were up. I have seen some opinions that we might even see a slight dip next month because of the extended shekel strength deflating rent and real estate. Every case is different, and you should always consult your qualified Israeli Mortgage Expert....
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israel

No more foreclosures

פסק דין: ביהמ”ש ביטל את סעיף הוויתור Good to be back home. I saw this while I was abroad, and wanted to print it here. If you’ve ever taken out a mortgage, you know how many things you never read in those little letters amongst the hundreds of papers you have to sign. Amongst the m, for the past 18 years, banks have been signing mortgage takers on a clause declaring that the borrower relinquishes his right to an alternative dwelling. The short of the law is that banks can’t foreclose on a property unless the owner has an alternative place to live. People can’t be thrown out to the streets. A year ago a judge ruled that the signature was meaningless because the...
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financial news

The View from Switzeraland

I’m in Switzerland right now. As in most places, the conversation quickly turns to the state of the economy. Inflation in Europe is at its highest since the Euro took over. See here:European inflation hits record high as confidence sinks – Summary : Finance GeneralSwitzerland is also experiencing very high inflation. As I sit in this frozen winter-wonderland in my t-shirt, it is no surprise. I don’t have any real knowledge, but just from hanging around for a week, it is hard to imagine a higher per-capita energy consumption. Higher oil prices are pushing up inflation. To be fair, I saw lots of hydro-electric power plants on the train ride to St. Moritz. They also talk a lot about the US$ exchange rate. The...
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