Posted on 11/27/2009 8:51:01 PM PST by blam
If Countries Like Dubai Begin To Fail, Who Will Save Them?
Dubai's plea this week for debt deferment could just be the thin end of the wedge, fears Jeremy Warner.
By Jeremy Warner
Published: 6:46PM GMT 27 Nov 2009
As one financial crisis recedes, another may be beginning. In Dubai this week, we've had a foretaste of what may be to come as governments around the globe seek to grapple with the explosive growth of fiscal deficits and public debt.
[snip]
Yet the important question for markets today is not whether Dubai and Sheikh Mohammed can survive the sandstorm; in fact, that is almost irrelevant. Dubai's debts of $80 billion (£48 billion) are a tiresome and unwelcome irritant which will cause further write-downs among western banks, but in the scale of things not of great significance: Britain is planning to raise more than three times that amount in the debt markets in this financial year alone.
Rather, the issue is whether this folie de grandeur of a desert kingdom is just an isolated, and therefore containable, incident, or a more worrying outrider for a wider sovereign debt crisis which might eventually engulf major, advanced economies. Everyone thought the financial implosion of the last two years was largely behind us – yet Dubai has reminded us that if nations start defaulting, then it may be about to enter a new and even more frightening phase.
[snip]
(Excerpt) Read more at telegraph.co.uk ...
THE AMERICAN TAXPAYER.
Our tax dollars no doubt.
Actually it would be the Chinese taxpayers.
dubai isn’t much of a nation really. I’m tired of all the fear mongering about debt and money and failure and blah blah. Live goes on
The US is the world’s largest debtor nation. We are bankrupt. We have a bigger begging bowl than Dubai, which isn’t a country. It is part of the UAE.
I agree the Dubai default is overblown. It is interesting to see the MSM unsure of how to play this story. They are no longer sure where the quicksand is for their pet Obamsky.
Related
Dubai Jitters Infect Debt of Sovereign Spendthrifts
http://online.wsj.com/article/SB125936720204567249.html?mod=WSJ_hpp_LEFTTopStories
http://ftalphaville.ft.com/blog/2009/11/27/85801/european-banks-most-exposed-to-uae-debt/
Why do you come on these threads then?
Me, I don't click on the UFO threads.
Dubai is a Muslim nation... Personally, I’d like to see ALL Muslim nations fail.
Because I like it/ ok no blahblah now it’s blamblam king of threads
Did you know they invoked rule 48?
http://www.zerohedge.com/article/nyse-invokes-rule-48-anticipation-extreme-volatility
Dubai is not a country. It’s an emirate of the United Arab Emirates.
The UAE holds the fifth largest proven oil reserves in the Middle East and the fifth largest proven natural gas reserves in the world.
“Why do you come on these threads then?”
Maybe because you bait folks with your “sky is falling” nonsense...
and then, oh my, they discovered the ocean started rearranging the sand. It's what oceans do. (The ancient Romans knew that when building in the ocean, you need something stronger than sand. They built structures out into the water using a concrete that cured in water. And used it for walls on city borders to keep the water at bay - some of those walls still exist.
So in Dubai, mega millions has to be constantly spend to keep putting the sand back. Can anyone say “not cost effective?” (I guess their mommies never read them "the three Piggies"
Can anyone say, “a fool and his money...”
Will the world come to an end if this ridiculous money pit goes back to the ocean?
Other than that, what did the Romans ever do for us?
You're calling one of the most conservative newspapers (The Telegraph) in the UK nonsense? I just posted the article...I didn't bait anyone.
“You’re calling one of the most conservative newspapers (The Telegraph) in the UK nonsense?”
The UK is pretty much a muslim country these days from what I read...
Yea, I know, The UK isn’t a country... But you get the idea.
They gave us Roman Numerals.
Was it invoked Thursday?
Not sure it just says earlier
http://www.zerohedge.com/article/nyse-invokes-rule-48-anticipation-extreme-volatility
If Countries Like Dubai Begin To Fail, Who Will Save Them?
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
A-There fellow Muslim nations
B-Obamacare
C-Who gives a rats a$$
Despite comments to the contrary, it is interesting. I’ve been following Dubai for a number of reasons. They are an interesting experiment, they have been trying to become the freeport of the middle east, the freeport of the world really. No taxes, no duties, set up your shop and do as you will. They are out of reach of many of the pesky laws constraining you back in the US or EU.
They have been preparing for the day that the oil runs out.
They are trying to become a Singapore style commercial hub, close to all the middle east action. If you need to set up shop in the middle east, Dubai is where you want to be. So to see them at the edge of bankruptcy is interesting to me.
No one.
I agree the Dubai default is overblown. It is interesting to see the MSM unsure of how to play this story. They are no longer sure where the quicksand is for their pet Obamsky.
Agreed. The day will come when they realize he has blighted all of their hopes and solvency as well. The attacks they launch then will be hellish indeed.
Um, Dubai is not a country. Its the capital of the United Arab Emerates.
ahhhh, like Washington DC, home of Kangaroos and Klown Princes....explains a lot
You’ll be happy to know that TARP funds were also used to fund Dubai, basically. Citigroup lent them around 10 billion dollars, and of course Citigroup was funded via TARP. Can’t make this stuff up.
Dubai is not a country. Stupid journalists...
Who says anyone needs to save them? It shouldn’t be our job to bail out every failing state/emirate/etc across the globe. We have our own deficit to worry about...which is WAAAYY bigger than Dubai’s.
Actually Abu Dhabi is the capital.
you fell right into the “Monty Python” allusion.....
The people of the USA are going to pay a very high price for joining in with globalism and willing to join in with banks all over the world.
If Countries Like Dubai Begin To Fail, Who Will Save Them?>>>>>>>>>>>>>>>>>>>>>
Dubai is to big to fail. It is the new Hong Kong.
You thought you have seen everything with mortgage derivatives?
Stay tuned for super JUMBO mortgage derivatives as the
US currency printng presses whine 24/7, monetizing EVERYONE’s Debt.
Hell CITI BANK lent Dubai 8 million bucks just weeks after
they got their TARP money. And many of CITIBANKS then new shareholders, who bought CITIBANK stock cheap were Dub-aites.Go figure!
US banks are about to take another BIG HIT.Its all part of the SOROS/OBAMA plan to destroy the US economy and bring investment to the 3rd world for socialist reasons.Every investor I know is selling out of bank stock and buying commodity based stocks and gold, a lot of it in third world nations. I guess the USD is finished, its all over except for the crying.
Stay tuned for super jumbo mortgage derivatives, bought by all the idiots who can’t refuse them NOW!Obama will insist.
US BANKS, DRINK THE SOCIALIST MORTGAGE DERIVATIVE POISON AGAIN OR DIE! ( will be the new Obama cry.)
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