So far, in spite of its reliance on export and overseas investments, Israel has remained a relative island in a global economic meltdown; this is due to its fiscally-responsible policies.

There was no real estate bubble.

Israel's banking system has been relatively-responsible, scrutinizing loans and mortgages (e.g., lucky home owners receive a 60%-70% mortgage). There was no real estate bubble.

Israel's budget deficit has been minimal in recent years - 1.2% and 1% of GDP in 2006 and 2007, respectively. Inflation has been under control since the 400%+ rates of the 1980s: 2.5% in 2005, -0.1% in 2006 and 3.4% in 2007 (largely due to a rise in the prices of commodities and oil, which has recently subsided). The interest rate (currently 3.75%) has remained around 4%.

The government expenditures-to-GDP ratio has declined to its lowest level since the late 1960s - 44.9%. The debt-to-GDP ratio has been shrinking from 95% in 2005 to 80.6% in 2007.

There have been declining tax rates and a solid shekel - currently 3.7 NIS to the US dollar, 3.5 NIS during 2007, and 4.3 NIS in 2006.

Israel constitutes an attractive post-meltdown market, due to the aforementioned fundamentals, in addition to its unique high-tech industries, which are top heavy with cutting-edge engineering and tangible technologies and products, and light with dot-com companies. While the scope of overseas investment in Israel has declined substantially, due to the meltdown on the investors' side, the flow of investment by astute investors persists. They invest in lower market valuations, expecting attractive "exits" during global economic recovery.

Oracle has acquired Israel's Primavera (550 employees), which is Oracle's second R&D center in Israel. The first one was acquired in 2006 (Globes, October 20, 2008). The Swiss giant Von Roll has acquired 80% of Israel's Enerco for $75 million (Globes, September 17, 2008). The New Jersey-based Phibro Animal Health, a global leader in medicated additive feed, acquired Israel's Avik for $47 million. Phibro operates two plants in Israel (Globes, October 17, 2008).

GE Pension Fund, IBM and Caisse de Depot et Placement du Quebec have been among the investors in Israel's

The flow of investment by astute investors persists.

Genesis VC's four funds. Genesis has recently completed its $100 million fourth fund (Globes Business Daily, October 23, 2008). Greylock Partners raised an additional $50 million for their current ($150 million) Israel-dedicated fund (Globes, October 8, 2008).

Morgan Stanley, Cisco and Europe's Index Ventures co-led a $63 million fourth round by Israel's Optier (Globes, September 24, 2008). Japan's Pacific Technology Fund led a $20 million third round of private placement by Israel's Altair (Globes, September 23, 2008). Spark Capital and Red Point co-led a $13 million second round by Israel's AdaptTV (Globes, September 24, 2008). Canada's Blackberry Partners launched its initial three investments, one of them in Israel's WorldMate - leading an $8 million round of private placement (Globes, October 30, 2008). Silicon Valley Bank has extended an $8 million credit to Israel's Mintera (Globes, October 20, 2008). River Cities Capital and Early Stage Partners led a $7 million round by Israel's Simbionix (Globes, October 20, 2008). Britain's GP Bullhound Sidecar and Dotcorp Asset Management invested $5 million in Israel's MyThings, while Bessemer and Mangrove invested $3.5 million in Israel's Wix (Globes, October 16, 2008).