Text size  The Second Lebanon War taught us something new about
the Israeli economy. In 2006, we were sure that the economy
would get caught up in a crisis and deep recession following the
barrage of rockets on the north, which we feared would hit Tel
Aviv. But it turned out we were wrong. The economy was unusually
strong and stable. It did shift down a gear for one quarter, but
it returned to its previous pace of growth immediately
afterward, as though nothing had happened. So maybe our economy
will be able to survive an attack on Iran intact?  This time
around, the Bank of Israel and the Finance Ministry are
predicting that an attack on Iran would cause serious economic
damage. They are concerned that the economy will ground to a
long-term halt; they worry about bankruptcies and mass layoffs.
The Bank of Israel is preparing to launch a program protecting
the banks from a possible panic manifested by a mass withdrawal
of money, which could put the banking system at risk of
bankruptcy.  An attack on Iran woul