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Stocks soar on fake profits

The TA-25 index registered its largest increase in three months amid larger-than-expected overseas income.

The profits are largely attributable to the Bank of Israel’s intervention, which keeps the dollar artificially high, and consequently makes overseas income balloon.

The BOI creates a major bubble with interventions in the foreign exchange market and by keeping the interest rate at near-zero. While BOI’s policy cannot increase industrial investment, it props speculation and the real-estate boom, only to make the eventual restructuring more severe.

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