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Bank Stock Crisis (Israel 1983)
The bank stock crisis was a financial crisis that occurred in Israel in 1983, during which the stocks of the four largest banks in Israel collapsed. In previous episodes of share price weakness, the banks bought back their own stocks, creating the appearance of constant demand for the stock, and artificially supporting their values. By October 1983, the banks no longer had the capital to buy back shares and to support the prices causing share prices to collapse. The Tel Aviv Stock Exchange closed for eighteen days beginning October 6, 1983 whilst a recovery plan was implemented and the banks were nationalized. History During the 1970s, Bank Hapoalim, and its manager, Yaakov Levinson, began attempting to control the bank's stock price on the Tel Aviv Stock Exchange by recommending to their customers that they invest in the bank's stocks by fraudulently providing guarantees that the prices of shares in the banks would rise indefinitely. These investments allowed the bank to increase ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Crisis
A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults. Financial crises directly result in a loss of paper wealth but do not necessarily result in significant changes in the real economy (e.g. the crisis resulting from the famous tulip mania bubble in the 17th century). Many economists have offered theories about how financial crises develop and how they could be prevented. There is no consensus, however, and financial crises continue to occur from time to time. Types Banking crisis When a bank suffers a sudden rush of withdrawals by depositors, this is called a ''bank run''. Si ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Histadrut
Histadrut, or the General Organization of Workers in Israel, originally ( he, ההסתדרות הכללית של העובדים בארץ ישראל, ''HaHistadrut HaKlalit shel HaOvdim B'Eretz Yisrael''), is Israel's national trade union center and represents the majority of Israel's trade unionists. Established in December 1920 in Mandatory Palestine, it soon became one of the most powerful institutions in the Yishuv (the body of Jewish residents in the region prior to the establishment of the state). Today, it has 800,000 members. History The Histadrut was founded in December 1920 in Haifa to look out for the interests of Jewish workers. Until 1920, Ahdut HaAvoda and Hapoel Hatzair had been unable to set up a unified workers organisation. In 1920, Third Aliyah immigrants founded Gdud HaAvoda and demanded a unified organization for all Jewish workers, which led to the establishment of the Histadrut.Z. Tzahor, "The Histadrut", in ''Essential papers on Zionism'', 1996, Reinharz ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Devaluation
In macroeconomics and modern monetary policy, a devaluation is an official lowering of the value of a country's currency within a fixed exchange-rate system, in which a monetary authority formally sets a lower exchange rate of the national currency in relation to a foreign reference currency or currency basket. The opposite of devaluation, a change in the exchange rate making the domestic currency more expensive, is called a ''revaluation''. A monetary authority (e.g., a central bank) maintains a fixed value of its currency by being ready to buy or sell foreign currency with the domestic currency at a stated rate; a devaluation is an indication that the monetary authority will buy and sell foreign currency at a lower rate. However, under a floating exchange rate system (in which exchange rates are determined by market forces acting on the foreign exchange market, and not by government or central bank policy actions), a decrease in a currency's value relative to other major curren ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Moshe Mendelbaum
The Bank of Israel ( he, בנק ישראל, ar, بنك إسرائيل) is the central bank of Israel. The bank's headquarters is located in Kiryat HaMemshala in Jerusalem with a branch office in Tel Aviv. The current governor is Amir Yaron. The primary objective of the Bank of Israel is to maintain price stability and the stability of the financial system in Israel. It also administers and implements monetary policy in Israel, conducts foreign exchange operations, supervises and regulates the banking system, takes care of the foreign reserves and operations of the financial market infrastructure. The Bank of Israel has, under Article 41 and 44 of its Statute, the exclusive right to issue Israeli Shekel banknotes and coins. History When Israel gained independence in 1948, the power of note issuance was vested with the Anglo-Palestine Bank, which was refounded as Bank Leumi in 1950. Monetary policy and banking supervision remained controlled by the Ministry of Finance. The Ban ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bank Of Israel
The Bank of Israel ( he, בנק ישראל, ar, بنك إسرائيل) is the central bank of Israel. The bank's headquarters is located in Kiryat HaMemshala in Jerusalem with a branch office in Tel Aviv. The current governor is Amir Yaron. The primary objective of the Bank of Israel is to maintain price stability and the stability of the financial system in Israel. It also administers and implements monetary policy in Israel, conducts foreign exchange operations, supervises and regulates the banking system, takes care of the foreign reserves and operations of the financial market infrastructure. The Bank of Israel has, under Article 41 and 44 of its Statute, the exclusive right to issue Israeli Shekel banknotes and coins. History When Israel gained independence in 1948, the power of note issuance was vested with the Anglo-Palestine Bank, which was refounded as Bank Leumi in 1950. Monetary policy and banking supervision remained controlled by the Ministry of Finance. The Ban ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
United States Dollar
The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official currency of the United States and several other countries. The Coinage Act of 1792 introduced the U.S. dollar at par with the Spanish silver dollar, divided it into 100 cents, and authorized the minting of coins denominated in dollars and cents. U.S. banknotes are issued in the form of Federal Reserve Notes, popularly called greenbacks due to their predominantly green color. The monetary policy of the United States is conducted by the Federal Reserve System, which acts as the nation's central bank. The U.S. dollar was originally defined under a bimetallic standard of (0.7735 troy ounces) fine silver or, from 1837, fine gold, or $20.67 per troy ounce. The Gold Standard Act of 1900 linked the dollar solely to gold. From 1934, it ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Consumer Price Index
A consumer price index (CPI) is a price index, the price of a weighted average market basket of consumer goods and services purchased by households. Changes in measured CPI track changes in prices over time. Overview A CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. Sub-indices and sub-sub-indices can be computed for different categories and sub-categories of goods and services, being combined to produce the overall index with weights reflecting their shares in the total of the consumer expenditures covered by the index. It is one of several price indices calculated by most national statistical agencies. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e. adjust for the effect of inflation) the real value of wages, salaries, and pensions; to regulate prices; and to deflate monetary magnitudes to show changes in real values. In most c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Israeli Agora
The agora (; plural agorot ; he, אגורה, . , ') is a Denomination (currency), denomination of the currency of Israel. The Israeli currency – the Israeli new shekel, new Israeli shekel (NIS)– is divided into 100 agorot. History The name ''agora'' refers to the subunits of three distinct Israeli currencies. This name was used for the first time in 1960, when the Israeli government decided to change the subdivision of the Israeli pound ( he, לירה, ''lira'') from 1,000 Israeli pruta, prutah to 100 agorot due to the currency's depreciation. The name was suggested by the Academy of the Hebrew Language, and was borrowed from the Hebrew Bible: The term "piece of silver" appears in Hebrew as "''agorat kessef''". In 1980 the Israeli pound was replaced by the Old Israeli shekel, shekel at a rate of IL10 per IS 1. The new subdivision of the shekel was named ''agora ẖadaša'' ("new agora"). There were 100 new agorot in 1 shekel. The high rate of inflation in Israel in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic Bubble
An economic bubble (also called a speculative bubble or a financial bubble) is a period when current asset prices greatly exceed their intrinsic valuation, being the valuation that the underlying long-term fundamentals justify. Bubbles can be caused by overly optimistic projections about the scale and sustainability of growth (e.g. dot-com bubble), and/or by the belief that intrinsic valuation is no longer relevant when making an investment (e.g. Tulip mania). They have appeared in most asset classes, including equities (e.g. Roaring Twenties), commodities (e.g. Uranium bubble), real estate (e.g. 2000s US housing bubble), and even esoteric assets (e.g. Cryptocurrency bubble). Bubbles usually form as a result of either excess liquidity in markets, and/or changed investor psychology. Large multi-asset bubbles (e.g. 1980s Japanese asset bubble and the 2020–21 Everything bubble), are attributed to central banking liquidity (e.g. overuse of the Fed put). In the early stages o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Yoram Aridor
Yoram Aridor ( he, יורם ארידור, born 24 October 1933) is an Israeli former politician, who served as a member of the Knesset from 1969 until 1988, as well as holding two ministerial posts. Biography Born in Tel Aviv, Aridor studied law at the Hebrew University of Jerusalem, and practiced law while being active in the Herut movement. He was first elected to the Knesset in 1969 as a member of Gahal, an alliance of Herut and the Liberal Party. Following the 1977 elections he became a deputy minister in Menachem Begin's government. Aridor's first ministerial appointment was the Minister of Communications, in 1981. In this position, Aridor immediately restored television color broadcasting. In the 1970s, color bursts (the signals encoding colors) were actively removed from IBA transmissions, in an attempt to discourage the population from buying new television sets. Aridor's action led to an increase of his popularity, and boosted his political career. Two weeks later ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ministry Of Finance (Israel)
The Israeli Ministry of Finance ( he, מִשְׂרַד הָאוֹצָר, ''Misrad HaOtzar'') is the main economic ministry of the Government of Israel. It is responsible for planning and implementing the Government's overall economic policy, as well as setting targets for fiscal policy, preparing the draft State Budget and monitoring implementation of the approved budget. The ministry also manages state revenues, collects direct and indirect taxes and promotes nonresident investments. In addition, the ministry conducts economic relations with foreign governments, economic organizations and the international community. The ministry regulates the state owned companies sector and the capital market, savings and insurance. Ministry of Finance The ministry is also responsible ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Kibbutz
A kibbutz ( he, קִבּוּץ / , lit. "gathering, clustering"; plural: kibbutzim / ) is an intentional community in Israel that was traditionally based on agriculture. The first kibbutz, established in 1909, was Degania. Today, farming has been partly supplanted by other economic branches, including industrial plants and high-tech enterprises. Kibbutzim began as utopian communities, a combination of socialism and Zionism. In recent decades, some kibbutzim have been privatized and changes have been made in the communal lifestyle. A member of a kibbutz is called a ''kibbutznik'' ( he, קִבּוּצְנִיק / ; plural ''kibbutznikim'' or ''kibbutzniks''). In 2010, there were 270 kibbutzim in Israel with population of 126,000. Their factories and farms account for 9% of Israel's industrial output, worth US$8 billion, and 40% of its agricultural output, worth over US$1.7 billion. Some kibbutzim had also developed substantial high-tech and military industries. For example ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
