Posted on 11/26/2009 12:47:01 PM PST by blam
Potential Dubai Default Rocks Financial Markets, While Dollar Soars On Panic Buying
Joe Weisenthal
Nov. 26, 2009, 9:33 AM
It's been well-known for some time that Dubai had found itself in a severe and precarious financial state.
In early October, for example, S&P warned that it was nearly out of cash.
But yesterday the once high-flying Emirate confirmed that it's reached zero-hour.
MarketWatch: Dubai late Wednesday said it would restructure Dubai World and announced a six-month "standstill" on repayments of the state-run wide-ranging conglomerate's debt. Ports operator DP World and its debt is excluded from the standstill plan.
....
"I don't see this as a massive issue but it's another warning to where the world got itself last year with loose monetary conditions [and] loose lending," said Naeem Wahid, market strategist at Lloyds TSB. "And, in a few cases, the problems are still out there and we could continue to see these kinds of nasty surprises" in the future.
Government-owned Dubai World is a conglomerate with interests in real estate, ports and the leisure industry. The firm carries around $60 billion in liabilities.
Despite the issues being out there, financial markets, including Brazil and London (when it's open) are pulling back, the pound is tanking and -- uh-oh -- the greenback is rallying! That could be bad news when stocks open on Black Friday.
Dubai itself isn't necessarily huge, but that's not exactly the point. What people are most likely freaked out about -- as Rick Bookstaber might point out -- is that people who own Dubai World debt may be forced to sell something else in unison to raise cash, triggering a bigger reaction.
Follow the story further at FT Alphaville >>
(Excerpt) Read more at businessinsider.com ...
Dow futures are -234 as I write.
can you give a link?
-276.40
The hairy thing about this is everyone assumed some of the big sovereign wealth funds would back this up . . . and they evidently aren’t. No one knows why.
That's going to leave a mark.
Black Friday might be one hell of a black Friday.
Oil’s trading down over 4% right now. Everything’s going to drop hard tomorrow.
Yep. Got the grap beat out of them. From Singapore to Seoul to Tokyo and everywhere in between. Yen’s sure ridin high, though (vs dollar) but who (Hu?) knows where that will go....
Anyone know if Rasmussen's working Thanksgiving Friday??
-289.40
It has been almost twenty years since the Nikkei reached its all-time high, closing on December 29, 1989 at 38,915.
It’s barely over 9,000 now. Twenty lost years for stocks in Japan.
http://en.wikipedia.org/wiki/Nikkei_225
-305.40
Naah. Not like it was S&P points.
Though we could get there. ..... "Paging Uncle Ben!" Time for ol' Ben to fire up the helicopters no doubt ..... but there have been rumors and speculation that Ben and the Treasury would move to bust the dollar bears' chops and kick the slats out from under the hedgies again like they did last year. (And accidentally-on-purpose? knocked over Lehman and Dick We-Hate-His-Guts Fuld. Which also packed in AIG and all the big banks -- oops.)
[AiT] Yen’s sure ridin high, though (vs dollar) but who (Hu?) knows where that will go....
Hu? Lily? Lily Hu Shih?
The name that comes to my mind right now as currency finagler supreme is George Soros. Although, keep in mind, he should now be on Ben Bernanke's and Obama's side, making the Hopey Changey guy look good.
No it's not, may take till Tuesday or Wednesday to get to that point.
What's bad, I'm not joking all that much about that possibility.
All that extragant building they’ve done.
And tax the Fed to finance his spending spree....?
Yes, charity is in the KORAN.
Charity to fellow Musims.
Jews, Christians, and other buzz off!
That was mt first thought too - Dominoes.
Thank you!
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