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KEN JACOBS, R. Ph.

M.I.T. Economist
Receives Nobel

In addition to Joseph Brod-
sky, a second Nobel recipient
with Jewish roots was an-
nounced this week. Brooklyn-
born, U.S. economist Robert
Solow a 63-year-old professor
of economics at the
Massachusetts Institute of
Technology, won the the
Nobel Prize in Economics for
what the five-member selec-
tion committee described as
development of a
mathematical model that
long-term growth depends on
technological progress, not
only on capitol and labor.

,

Stock Plunge
Shakes Israel

Tel Aviv (JTA) — A frantic
selling spree and a bomb
scare shook the Tel Aviv stock
exchange Oct. 20 as fearful
investors reacted to Oct. 19's
crash of the New York stock
market.
It was probably the most
tumultuous day in the history
of the Tel Aviv bourse and
could have not come at a
worse time for Israel's finan-
cial markets and the economy
as a whole.
Oct. 20 was the last day
that holders of government-
backed Israel bank shares
had to decide whether to
redeem them or hold out for
a higher return payable in
1989. Treasuary officials had
estimated that about $700
million worth of bank shares
would be cashed by the public
and, hopefully, reinvested in
other shares or in saving
plans.
But the news from Wall
Street and its reverberations
in financial markets around
the world apparently trig-
gered a mass dumping of all
securities, an event the
finance ministry and the
Bank of Israel had hoped to
avoid.
Many bank-share holders
who had indicated only a day
before that they would hold
on, decided Oct. 20 to sell out
and buy durable or consumer
goods. This, economists fear,
will set off a new round of
runaway inflation, with
devasting effects on Israel's
long and generally successful
efforts to hold the line against
inflationary trends.

UJA Chairman

New York — Morton A. Kor-
nreich of New York City has
been elected national chair-
man of the United Jewish Ap-
peal's 1989 Campaign.

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THE DETROIT JEWISH NEWS

23