Yes Israel is falling apart but i'm not sure how strong the gravity around the abyss.
The Israeli public is in distress. Rothschild Boulevard in Tel Aviv one of the prettiest areas in town had become a tents city, hosting protesters demanding social justice. Israeli exports to the US far more important than the TASE indexes have dropped 9% in May and June, it is difficult to see them recovering in the near future.
If America is heading for another recession almost a certainty then it would be harder and more expensive for Israel to continue receiving cheap loans and gifts from Uncle Sam. That’s no all, Western European economies are in an equally bad shape with Spain being the probable target of the next euro-bailout meaning some of Israel’s main markets are shrinking. Israel won’t be rescued from there. Developing countries won’t help. First, they are traditionally unfriendly towards Zionism. Then, the western financial crisis is causing a slowdown there. China depends on exporting consumer goods to the West; Russia and Brazil depend on sales of raw materials and energy to China, India and others. A crisis in the US and Europe and will lead to reduced world trade, at the expense of developing economies. Since May, the leading Brazilian index dropped by 20% due to these fears. Uncle Zion is worried.