Tips for and explanations of various banking topics

Last Week's Dollar: Why the Big Jump?

In the past I have written about the US dollars tough battle against a downward spiral. In short, the UnitedState’s dollar is fighting an increasingly gargantuan federal deficit and the prospect of continued low interest rates neither of which bode well for the strength of the dollar.

With that said, what happened last week that caused the dollar to soar against the shekel? Friday, October 23rd, saw the dollar close at 3.6972 while a week later on Friday, October 30th, the dollar closed at 3.7545 a jump of 1.5% in only seven days!

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Today's US Dollar & How it Affects Your (Nonprofit's) Budget

What we in the nonprofit world need to realize is that the problems with the dollar are much larger than the USD/NIS rate of exchange. Changes in the dollar affect the world – Israel is just one of many. The Bank of Israel’s moves to buy dollars might be helping a little and the in the short term stemming the decline of the greenback, but Bank of Israel Governor Stanley Fischer is similar to David trying to fight Goliath armed with only a rubber band. Many argue that the problems of the US dollar are larger in scope and strength than anything that Fischer can throw at it.

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Understanding Credit in Israel, Pt 2: Bridge Loan vs. Line of Credit

In a previous post, I mentioned that a loan and a line of credit serve the same purpose. While that may be true in a broad sense, they actually can be quite different. Hence, the different names. The bank will look at both types of credit the same way, evaluating the amount of credit requested against the amount and type of collateral offered. The customer, however, only cares about one thing, which option is cheaper.

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Understanding Credit in Israel, Pt 1: Types of Credit

It is logical to assume that if a bank wants to appeal to the nonprofit community then it has to understand the nonprofit organization’s way of thinking (that’s where I come in). The opposite should also be true. If a charitable institution wants to appeal to a bank then it must understand the bank’s way of thinking. This is especially the case when using or applying for credit from a bank.

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