So who says all CEO’s are bums? If you listen to those in the Obama administration you would think that being a CEO is worse than being a lawyer. Well there is an Israeli CEO, Eli Yones of Mizrahi Tefahot Bank, who may change the president’s mind. You see Mizrahi Tefahot Bank is actually quite profitable,and as such Yones was entitled to and deserved a very large bonus. Yet he decided to decline it so that his employees would receive it for their hard work.

According to Globes: “Yones said, “Continuing the bank’s profit trend and the ongoing improvement in its image and positioning as a stable, successful, and leading bank are the result of hard and goal-oriented work demonstrated by the bank’s employees last year. There is no doubt that they deserve appreciation and financial compensation for this. Nonetheless, we must not ignore the difficult economic reality and expectations that the recession will worsen in 2009.”Yones advises that Mizrahi Bank’s 2008 bonus budget be smaller than the bonus for the bank’s 2007 profits. The 2008 bonus should reflect the employees’ achievements as well as the economic crisis and public mood.As for his own bonus for 2008, Yones said, “In such times, I believe that the bonus budget should go entirely to the employees and managers of the bank.”

How about showing Yones some appreciation for his bold and selfless move?

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Hey don’t worry, the Bank of Israel has a plan to combat unemployment. What that plan is is any-one’s guess, but at least they say they have a plan.

According to a Globes article: “Bank of Israel Research Department director Dr. Karnit Flug told “IDF Radio” (Galei Zahal) today. Flug added, “We have plans to minimize unemployment.” She also noted that experience showed that salaries would probably be eroded as the recession puts downward pressure on wages.”

She told the radio station that she expects another 50,000 more Israeli’s to be added to the unemployment line, but doesn’t think things will be as bad as they were in 2001, after the internet bubble burst.

Flug has taken a cue out of the Barack Obama playbook. nice slogan and no real plan. I guess in our day and age, you need to be long on slogans and short on real plans. What’s her plan to increase jobs? Not important.

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As 2008 comes to a close, let’s take a look back at the predictions this pundit made a year ago. Let’s start out with some of my correct calls:

1- At some point during the year the price of crude oil will trade below $75 a barrel. This will be great for the consumer as they save a lot of money at the pump, and will cause a crashing of many alternative energy stocks, especially the Solar plays like First Solar(FSLR).

Nailed that one!

4- Late in the summer the current Israeli government headed by PM Ehud Olmert will fall, and new elections will be called.

Many will say that was a no-brainer.

6- The earth will cool, there will be no global warming.

Just look outside your window.

Now for some of the less accurate predictions:

2- There will be no recession in the US economy, despite the best efforts of the media to “will” one. While the economy should slow somewhat during the first half of ‘08, the economy will grow enough to stay out of a recession, and the second half of ‘08 should bring back 4+% GDP growth.

Oops!

3- The Rudy Giuliani/John McCain ticket will surprisingly win the US presidential election. With Republicans given virtually no chance to hang on to the White House, with a strong economy and the continued  new-found success of the war in Iraq, they not only win but win back control of Congress as well.

So I missed a few on this one.

All in all not too bad. Stay tuned for ‘09 predictions.

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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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As we have mentioned here more than once, the Israeli economy may not be in as great shape as our leaders have let on. Tonight’s surprise 50 basis point cut, bringing rates down to just 3%, indicates that even the Bank of Israel is worried about a potential economic slowdown or even a recession.

With analysts lowering their ‘09 growth forecasts, Fischer who has until last week remained unrealistically optimistic, appears to have thrown in the towel an admitted that things aren’t all that rosy, and is trying to add liquidity to the Israeli banking system to try and prevent the same type of credit crisis gripping the global banking system.

While I think the local economic slowdown will continue, this aggressive move by the Bank of Israel will help stem the damage to the economy that a prolonged recession could cause.

Please see our Disclaimer HERE.

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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