Will the real Bank of Israel Governor please stand up? A week after telling us that everything is just peachy re: the Israeli economy and Israeli banking system, all of a sudden Globes is out with an article that Fischer is now ‘worried.’ The article says, “We expect 2.7% growth in 2009, and we’re accused of over optimism. In such times, if you want to be serious, you should be worried, and I am really worried. Wise men won’t tell you that there is nothing to be worried about,” said Governor of the Bank of Israel Prof. Stanley Fischer last week during a meeting of the EU-Israel Chambers of Commerce and Industry held at the home of the Ambassador of France.”

I guess Fischer figures that the Israeli public isn’t fluent in French. As posted here last week Fischer said that Israeli banks were in good shape. If so then why did he tell the Chambers of Commerce  that, “There will probably be a period of a rise in unemployment, a drop in the growth rate, and some companies will find it difficult to raise capital. These things happen during a slowdown. Some companies will find it difficult to obtain credit.”

Why should it be hard for companies to get credit if the banks are safe and sound????

Gov. Fischer, please just level with us.

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Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.

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