Friday, November 12, 2010
Large Loss while Sleeping
I have to register in this diary (and try to learn something from it) a large loss this afternoon, while I was sleeping. TASE, the local stock exchange, spiraled down several percentages. The reasons seem to be the Sheshinsky Commission's recommendation to tax (66%) the gas and oil prospecting partnerships, and possibly the disaccord in the Seoul meeting. The Sheshinsky Commission had to decide between the populist, nationalist, demagogic demand to expropriate foreign and local oil companies, like they are doing in Ecuador and Venezuela, or to allow them to take their profits home. If succesful ventures are taxed to death, no one will invest in Israel. I thought Israel was more mature, but it appears that we are much a Third World country. Pic. Trubovich, head of DELEK, the largest Israeli oil company. He says that Sheshinsky is moved by envy. Of course.