Dubai going down in flames

tmare_IHB

tmare_IHB

New member
I guess we knew it wouldn't be long. The entire place is the epitome of every reason we are experiencing this financial meltdown. It represents the worst in all of us, all of the looks of prosperity, but built on sand. It is fitting that this place will probably disappear entirely, it's just sad how many people suffered to build it.



<a href="http://www.msnbc.msn.com/id/34165138/ns/business-world_business/">Dubai's Debt</a>
 
im sure our govt will deem dubai to big to fail and will follow up shortly with a bailout package courtesy of the US taxpayer then the dow will rally 500 points in a day after investors continue to believe that the US wont let anything or anyone fail, well unless you make over 250k a year, the govt will let that group fail because no one should make that kind of money to begin with.
 
Dubai is Abu Dhabi's problem. It is humorous to think that the royal family could be thrown in debtor's prison-- although this is not realistic.



In many ways this is reminiscent of the parable of the two debtors, but with a twist. Dubai and its leaders have been unmerciful to those who have owed it relatively small amounts of money (and thrown those people into debtor's prison), but are likely to be treated relatively graciously even though it owes incredibly large sums.
 
Ah, but what do you do when a sovereign state corp refuses to sell or pay?



<a href="http://news.yahoo.com/s/nm/20091129/bs_nm/us_dubai_assets">"DUBAI (Reuters) ? Dubai World has refused to offload assets at fire-sale prices to repay obligations, forcing it to seek a debt standstill..."</a>



Coupled with this gem: "The restructuring is expected to focus on property and foreign investments which have been worst hit by the economic crisis, the source said.



"Asset sales should be commercially fair to meet the group long-term strategic goals, beyond the immediate economic pressures," the source added."





In other words, like the banks, it's worth what they say it's worth and they'll only sell it if you pay them what they want.





Maybe investors and Central banks will wake up and realise how much risk they really have with loans.



Oh wait, that's incredibly bad for the USA.
 
I do not know squat about Dubai, the UAE, or even the mideast, but the more I read and hear about Dubai's default, the more I wonder if it is much ado about not too much. The UAE uses a fiat currency. They will print their way out; quantitative easing.
 
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