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DUBAI, United Arab Emirates - The Dubai government disclaimed responsibility for the debts of Dubai World on Monday, dealing a blow to creditors' assumptions that the Arab emirate would guarantee the conglomerate's liabilities.
"Creditors need to take part of the responsibility for their decision to lend to the companies," said Abdulrahman al-Saleh, director general of Dubai's department of finance. "They think Dubai World is part of the government, which is not correct."
there is no concept of bankruptcy. If you get into debt and you can't pay, you go to prison.
As soon as you quit your job in Dubai, your employer has to inform your bank. If you have any outstanding debts that aren't covered by your savings, then all your accounts are frozen, and you are forbidden to leave the country.
Originally posted by St Udio
Ah Ha, sensible Arabs....
Dubai, UAE evidently do not see the corporate enterprise Dubai World as'Too Big To Fail'...
i guess they seen all the crisis fiasco the USA Fed/Treas had with AIG and the others like GM, Freddie & Fannie, & they weren't going to get blindsided by a threat of financial system collapse & martial law
if a TARP wasn't set up in their Kingdom.
good for them
Driven down by debt, Dubai expats give new meaning to long-stay car park
From The Times February 5, 2009
For many expatriate workers in Dubai it was the ultimate symbol of their tax-free wealth: a luxurious car that few could have afforded on the money they earned at home.
Now, faced with crippling debts as a result of their high living and Dubai’s fading fortunes, many expatriates are abandoning their cars at the airport and fleeing home rather than risk jail for defaulting on loans.
Police have found more than 3,000 cars outside Dubai’s international airport in recent months. Most of the cars – four-wheel drives, saloons and “a few” Mercedes – had keys left in the ignition.
Some had used-to-the-limit credit cards in the glove box. Others had notes of apology attached to the windscreen.
You had to know it was going to end. Dubai's storied boom is starting to falter as the worldwide economic woes catch up with the nation's real estate and financial services-fueled good times. Abandoned cars are beginning to pile up at Dubai International Airport as overextended expatriates flee. Dubai throws debtors in the pokey, and if you lose your job, they yank your visa; two good reasons to drive to the airport and leave your maxed out credit cards on the passenger seat with an "I'm sorry" note. 3,000 cars are reportedly stockpiled at the airport so far, and with reports of 1,500 visas a day being cancelled, there may be a lot of dusty, cut rate luxury cars available for closeout prices.
Originally posted by ProtoplasmicTraveler
This is a whole lot of unnecessary panic as we are already well into a jobless recovery! My understanding is that a jobless recovery means we will all make lots of money without having to be bothered with having jobs!
We will be able to not only afford to travel thanks to the jobless recovery but will have time to travel because according to the government we no longer need jobs to recover! That Obama sure is swell, I haven’t quite figured out yet just how and when we will be paid without traditional jobs but I am sure one of is 666 czars are hard at work on that.
Flush with cash and no responsibilities we will be able to enjoy picking up these beautiful unique one of a kind homes in the World at Dubai at fire sale prices!
We sure are lucky! In just one short year Obama has turned the failed world economy around and even made it possible for us not to work anymore!
He sure has my vote too come reelection time which we will all have plenty of time to cast since we have no jobs. Thankfully thanks to the expert and wise leadership in Washington we won’t need them! U.S.A. we’re number 1!
I am sure any republican president would be doing excatly the samething. Since they are all the same.
Originally posted by tooo many pills
Do you think it is possible that the Crown Prince of Dubai planned this all along?
Bank of England governor Mervyn King has revealed for the first time that in October 2008 the Bank had lent Halifax Bank of Scotland (HBOS) and the Royal Bank of Scotland (RBS) £62 billion.
Lloyds shareholders were gulled into a merger that ended up nearly destroying their bank without ever being told that their new partner, HBOS, was being propped by secret emergency loans.
In essence, it was a 'brown envelope' style operation with vast sums of money ladled out to the banks without a trace being seen in the budget documents. Nor were they disclosed in the published accounts of the Bank of England.
Royal Bank of Scotland Group Plc was the biggest underwriter of Dubai World loans while HSBC Holdings Plc has the most at risk in the U.A.E., according to JPMorgan Chase & Co.