Tuesday, November 29, 2011

Israel as a Capital-Exporting Country

The Bank of Israel reduced the interest rate to 2.5% while the rates in Europe are rocketing (Italy pays 7.5%). One could take a loan in Israel and buy Euro bonds - financing in fact Europe. I remember the times when Israel needed American Jewish charity.

2 comments:

Anonymous said...

Koko advises against buying high-yielding European bonds.

Anon.

J said...

My bank has profiled me as risk-indifferent. But I cant go against Koko's clairvoyant advice.