Posted on 02/22/2010 1:06:00 PM PST by TigerLikesRooster
Debts threaten to engulf Kuwait's investment industry, bankers warn
By Robin Wigglesworth in Kuwait
Published: February 22 2010 02:00 | Last updated: February 22 2010 02:00
Most of Kuwait's multibillion- dollar investment company industry could be wiped out by debt repayments on the finance houses' leveraged investments made before the recession, senior international and local bankers have warned.
Spurred by cheap credit, abundant liquidity and few other opportunities in the government-dominated economy, Kuwaitis have set up scores of investment houses to bet on international and regional real estate, private equity and stocks. At its peak, the industry had assets of more than $50bn.
However, much of the spree was financed by short-term loans, and the financial crisis hit the local investment houses like a tsunami, said one analyst.
(Excerpt) Read more at ft.com ...
I guess the whole world is living on visa.
The world is relearning the hard lesson that the sword of leverage cuts both ways.
I can’t wait until someone tries to explain to me why future generations of Americans - my children and yours - have to pay off the world’s visa bill. Just wait.
Infidels are going to eventually learn that investing with muslims under sharia law is a lose-lose proposition...
I have never understood how a whole culture predicated on the idea that lying to infidels for the good of islam is ok.... how or why you should trust such people.
Of course, it is not like the west is a paragon of honesty these days, either.
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