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UAE to back banks amid Dubai meltdown

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posted on Nov, 29 2009 @ 01:51 PM
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UAE to back banks amid Dubai meltdown


hosted.ap.org

By BARBARA SURK and TAREK EL-TABLAWY
Associated Press Writers

DUBAI, United Arab Emirates (AP) -- The United Arab Emirates has pledged to stand behind foreign and domestic banks in the country, offering additional money while extolling the strength of the Gulf nation's financial sector as world markets brace for a potential day of reckoning Monday over Dubai's crushing debt.

The UAE's immediate priority was arguably to avert any run, however unlikely, on banks by panicked depositors. But the promise of cheap funds also signaled to global investors that the country's federal governm
(visit the link for the full news article)




posted on Nov, 29 2009 @ 01:51 PM
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Well I have heard echoes of Britain wanting to bail out Dubai since it can't seem to hold it's own anymore. With this, they might not have to at all.

It does make me wonder why they would support Dubai, then again I don't know much about the UAE and it's work with various countries.


The most probable scenario, according to analysts, is that Abu Dhabi will step in with a bailout, perhaps cherry-picking the strongest assets to support


So would this be enough to help them out of the rut? Or is this just more postering to fear people into a market crash yet again?

Thoughts?

~Keeper



hosted.ap.org
(visit the link for the full news article)



posted on Nov, 29 2009 @ 02:11 PM
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reply to post by tothetenthpower
 



It does make me wonder why they would support Dubai, then again I don't know much about the UAE and it's work with various countries.


It could have something to do with the fact that the emir of Dubai, Mohammed bin Rashid Al Maktoum, is the prime minister and vice president of the UAE.

One a side note, I wonder if Halliburton is regretting it's move to Dubai? Of course, there is also this interesting factoid:


The DP World controversy began in February 2006 and rose to prominence as a national security debate in the United States. At issue was the sale of port management businesses in six major U.S. seaports to a company based in the United Arab Emirates (UAE), and whether such a sale would compromise port security.

The controversy pertained to management contracts of six major United States ports. The purchaser was DP World (DPW), a state-owned company in the UAE. The contracts had already been foreign-owned, by Peninsular and Oriental Steam Navigation Company (P&O), a British firm taken over by DPW (completed in March 2006). Although the sale was approved by the executive branch of the United States Government, various United States political figures argued that the takeover would compromise U.S. port security.



In mid-October 2005, DP World approached the Committee on Foreign Investment in the United States (CFIUS) to clear regulatory hurdles for a possible acquisition of the British firm P&O. The CFIUS is the multi-agency federal panel that passes judgment on deals with foreign corporations that raise antitrust or national security questions, Soon after, DPW began negotiating the terms of the takeover with P&O.[1] They were advised by former President Bill Clinton to submit to a 45-day review of the acquisition.[2][3]



On March 9, 2006, Dubai Ports World released a statement saying they would turn over operation of U.S. ports to a U.S. "Entity".[11] Later that same day, American Enterprise Institute scholar Norm Ornstein reported on PBS's "News Hour" that DP World was considering selling its U.S. operations to Halliburton.[12]

Dubai Ports World eventually sold P&O's American operations to American International Group's asset management division, Global Investment Group for an undisclosed sum.[1]


Dubai Ports World Controversy

And then there is this:


After the Taliban takes control of the area around Kandahar, Afghanistan, in September 1994, prominent Persian Gulf state officials and businessmen, including high-ranking United Arab Emirates and Saudi government ministers, such as Saudi intelligence minister Prince Turki al-Faisal, frequently secretly fly into Kandahar on state and private jets for hunting expeditions. [Los Angeles Times, 11/18/01] General Wayne Downing, Bush's former national director for combating terrorism, says: "They would go out and see Osama, spend some time with him, talk with him, you know, live out in the tents, eat the simple food, engage in falconing, some other pursuits, ride horses. One noted visitor is Sheik Mohammed ibn Rashid al Maktum, United Arab Emirates Defense Minister and Crown Prince for the emirate of Dubai.


The Dubai-Al Qaeda Connection: Smoking Gun for Bush?

Most interesting things run parallel to this Dubai meltdown crisis.

[edit on 29-11-2009 by Someone336]



posted on Nov, 29 2009 @ 02:36 PM
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reply to post by Someone336
 


Whenever large places have an economic metldown things always seem to happen in tandum.

Ohh well it will be something to watch. A simulated crash would be devastating at this point.

~Keeper



posted on Nov, 29 2009 @ 02:43 PM
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reply to post by tothetenthpower
 

You and I seem to be on the same wave length today,

How Dubai's dream sank in a sea of debt
The emirate’s debt-fuelled spree has been exposed by the recession. Will UK banks and contractors get back their money?

www.telegraph.co.uk...


EXPATRIATES AT THE TOP

David Eldon, chairman of Dubai International Financial Centre

Scotsman Eldon, 64, has been working on and off in Dubai since 1968, when his first overseas posting took him to the British Bank of the Middle East (part of HSBC). He spent 11 years in the Middle East working for HSBC, before going to the Far East, where he rose up the ranks to Asia chairman. Eldon joined DIFC in 2006.

Gerald Lawless, executive chairman of Jumeirah Group

Gerald Lawless .s up Jumeirah, the hotels arm of Dubai Holding and owner of properties including the Burj Al Arab hotel. Born in Ireland in 1952, he has been with the Dubai company since 1997. Prior to that, he had spent 23 years working for Forte, the leisure giant. He moved to Dubai in 1991 to set up Forte’s Middle East office.

Maurice Flanagan, executive vice-chairman of Emirates

Flanagan, 81, once wrote a television play for Leonard Rossiter but it is as boss of Dubai’s national airline that he has received acclaim. He led the team that launched Emirates with two planes in 1985 on a budget of $10m and has overseen a huge expansion of the fleet. Flanagan, from Lancashire, started his aviation career with BOAC after serving in the RAF.

Rick Pudner, chief executive of Emirates NBD

Another experienced British banker and a veteran of HSBC, Pudner .s the merged Emirates Bank and National Bank of Dubai. He played a key role in overseeing the integration in 2007 of the two organisations. Arabian Business magazine rated Pudner as the most influential Englishman in the region in its list of powerful expatriates.



posted on Nov, 29 2009 @ 02:46 PM
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reply to post by Stormdancer777
 


I doubt it. Those investments will be deamed loss and they'll draw up some 10 year plan to pay it back which will never happen either.

More likely this is somewhat of a test by the PTB to see how people react to the thread of market crashes just before the holiday season. Just before the end of the year, to usher in a WHOLE year of debt instead of just a few months.

Remember, the economy only got bad when people were told it was going to happen and they STOPPED spending their money out of fear.

Fear is the driving motivator in our economy just like in our politics, wether foreign or domestic.

The UAE might receive some critism from US and European investors about this, why did they not help American or European interests when they were in a pinch?

I think trade wars are very much the next really big challenge.

~Keeper



posted on Nov, 29 2009 @ 02:55 PM
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reply to post by tothetenthpower
 




The UAE might receive some critism from US and European investors about this, why did they not help American or European interests when they were in a pinch?


Will we borrow money from China to help bail out Dubai?

Truthfully the world has gone mad.
On a side note I just got a U2U from a poster who told me he hated me, because of my political opinions,

Yup the world has gone mad!



posted on Nov, 29 2009 @ 03:09 PM
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reply to post by Stormdancer777
 


I doubt that we'll be the ones bailing out Dubai, even if AIG is tied to Dubai World via the Ports Controversy. The interconnections between the UAE ruling family will probably lead to Abu Dhabi to do the bailing out, as they are far wealthier than Dubai due to oil.

Maybe China will bail out Dubai themselves to get Dubai in hock to them, but this is doubtful as China doesn't hold any Dubai World bonds.

Britain's interest in this Dubai crisis is interesting to me. Dubai and the UAE, alongside the rise of India and China, began the shift of balance of power from West to East. This meltdown has shown this to be an uncertain future, and at the very least slowed the transition.



posted on Nov, 29 2009 @ 03:21 PM
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Originally posted by Stormdancer777
reply to post by tothetenthpower
 




The UAE might receive some critism from US and European investors about this, why did they not help American or European interests when they were in a pinch?


Will we borrow money from China to help bail out Dubai?

Truthfully the world has gone mad.
On a side note I just got a U2U from a poster who told me he hated me, because of my political opinions,

Yup the world has gone mad!



I don't think China would lend us more money even if we begged them to. They have 1 trillion of it already and that's not really a safe investment at this point.

As for the member, yeah, that's happened to me. I got foe'd once cause I said I approve of women making their own decision about abortion, but that's off topic.

Hopefully America keeps her hands clean and allows Dubai to either flourish or fall by it's own standards.

~Keeper



posted on Nov, 29 2009 @ 04:05 PM
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Dubai is like Vegas. Ridiculous desert cities built where they can't sustain themselves. Temples to human ego, folly, greed, and lack of control over base instincts. Places with no future because everything needs to be trucked in and they are built on debt and future imagined pipe-dreams of what pleasuredomes they could be. Notice that Vegas and the desert cities in Arizona are hurting pretty bad these days too.

"I met a traveler from an antique land
Who said: Two vast and trunkless legs of stoneStand in the desert. Near them, on the sand,
Half sunk, a shattered visage lies, whose frown,
And wrinkled lip, and sneer of cold command,
Tell that its sculptor well those passions read,
Which yet survive, stamped on these lifeless things,
The hand that mocked them, and the heart that fed,
And on the pedestal these words appear:
“My name is Ozymandias, King of Kings:
Look upon my works, ye Mighty, and despair!”
Nothing beside remains. Round the decay
Of that colossal wreck, boundless and bare
The lone and level sands stretch far away."

-P.B. Shelly



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