What first appeared to be an American mortgage crisis has since evolved into a major economic situation, with different experts putting his/her own label on the current situation.
 
By many expert accounts, the situation has yet to bottom out, and in Israel, concerns are growing too as the Tel Aviv Stock Exchange continues to suffer as a result, with Sunday called the worst day in ten years. Despite the passage of the US bailout package, a staggering $700 billion, the TASE did react harshly to the sharp fall of the US markets on Friday.
 
The TASE fell 6.3% on Sunday followed by the Tel Aviv 100 Index fell 6.6%. The Real Estate Index was off 11:04%.
 
Banks have reportedly lost NIS tens of billions in US investments, and pension funds have been hit as well. The Bank of Israel is taking a firm approach and has ordered banks to report where large investors’ funds are at present to permit assessing the situation and possibly avoid additional monetary failure.
 
Channel 10 News reported on Sunday night that one prominent Israeli hit hard is Lev Leviev, who heads Africa Israel. It is reported that Africa Israel dropped close to 80% of its worth this year and Leviev is in serious financial difficulties at present. The report indicates he may be compelled to sell off 75% of his holdings as a result of his current situation. The same holds true for a number of other top earners in Israel.
 
The message from Bank of Israel officials is one of calm but as American sinks deeper and European involvement becomes increasingly evident, Israelis are beginning to exhibit concerns regarding pension funds and the stability of their investments.

(Yechiel Spira – YWN Israel)