Prepare for a horrible day in stocks - Dubai is about to fuck us

papajohn56

papajohn56

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Jun 16, 2008
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Dubai Debt Delays Revive Fear of Financial Crisis - Financials * Asia * News * Story - CNBC.com

Dubai World, the conglomerate that led the emirate's expansion, had $59 billion of liabilities as of August, a large proportion of Dubai's total debt of $80 billion. Nakheel was the builder of three palm shaped islands off Dubai.

The news shook markets that are recovering from the collapse of the U.S. housing market and contagion that threatened to rupture the global financial system last year.

"The panic button's been hit again," said Francis Lun, general manager of Fulbright Securities.
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Dubai is looking like they're going to default on a shit ton of debt, so here we go again
 


Interesting news. I was reading about this on Thanksgiving and watching other markets go down about 3%.

Dubai is a very interesting place/story. I can't help but think of the term "irrational exuberance" every time I think/hear about the place. So I'm not surprised to here about this.

$60-80 billion is a lot, but to keep things in perspective Lehman was 10x that and a US company. I don't really see how Dubai could have a huge impact unless it starts a huge wave of stuff similar to what happen with the investment banks in the US. I don't really see how that could happen though. So I think this may trigger a correction in the markets, but I don't think it could do much more than that.

Just my thoughts.
 
Dubai was a classic bubble that popped over a year ago. Construction works ground to a halt as banks saw the light and started to refuse (or withdraw) funding on flimsy projects that are all about trumping the neighbours. As funding was withdrawn, employers stopped paying contractors, and contractors started walking off sites. This is never a good situation in any industry, but in large-scale construction it's disasterous.

Construction companies have been moving out in droves for a long time. All the foreign labour that they brought in to do the actual work have largely gone home; (mainly) Western expats that were brought in to manage the work have disappeared and (mostly) returned home.

This was inevitable, and I can't imagine that the major banks are going to be all that surprised by it. The announcement was a formality that everyone should have expected.
 
No surprise, Dubai had some cool stuff but it was doomed to fail.
 
people were scared that this was going to cause another "Asian Flu" crisis, similar to the one that hit in '97. Abu Dhabi told the world that it would not let Dubai go under. That's why the US market didn't get hit as hard as the other global markets.
 
how much did they want for a house on the artificial island again? I bet you can have it cheaper now.
 
I read (I believe it was around six months ago now) there were all kinds of luxury cars being left at the airport b/c people were out of money and bouncing out of the country...
 
PhillipMarlow said:
I read (I believe it was around six months ago now) there were all kinds of luxury cars being left at the airport b/c people were out of money and bouncing out of the country...
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yeah read that somewhere too. it's too bad because that place looked like it coulda been awesome.

People are pouring out of Dubai - Boing Boing

People are literally fleeing this place, to date leaving 3000 cars stranded at the airport with keys still in the ignition. And the reason for this is that if you default on your Dubai mortgage, you can end up in a debtors prison.
 
Apparently, there's real estate available in Dubai for much less than before. The Nakheel corporation, which is closely associated with the dictator of Dubai (sheik Mo), is being very active in targetting potential buyers, specifically in the UK. It looks as if you won't even be able to give away Dubai real estate in six months' time.
 
Dude nothing there in Dubai why would i go there when I could go to Vegas. No strip clubs wack if you ask me. Here ya go enjoy. Law in Dubai:
As is the case in any country, don’t swear, shout loudly or gesture in a rude manner. This should apply wherever you are, but in Dubai is will be viewed in a more serious manner still.

Kissing in public is also not a good idea. Whilst a quick kiss on the cheap is certainly no problem, longer and more passionate displays should be kept in private. I stick with VEGAS or Miami if you ask me
[ame="http://www.youtube.com/watch?v=qukUmDfoDpc"]YouTube- Broadcast Yourself.[/ame]
[ame="http://www.youtube.com/watch?v=5f6QAWKgU9g"]YouTube- Broadcast Yourself.[/ame]
 
Wonder if they'll start giving heavily discounted rates to Burj Al Arab. That place looks so pimp.

c6db4b0c96ec6a1599eb07eba8090e31.jpg

2b_Amazing_Dubai-s480x360-2220-580.jpg

BurjAlArabLobby.jpg
 
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