Dubai can't pay

The Brits "R" It:

British banks have the most to lose among international lenders from a crisis in the United Arab Emirates, with a combined $49.5 billion of loans outstanding, according to a report from RBS that cites Bank for International Settlements data published in June.

U.K. Prime Minister Gordon Brown’s government is monitoring the situation in Dubai, his spokeswoman said today.

www.bloomberg.com...

But not to worry. Everything's fine. This is all just a bad dream.

Banks, world leaders play down Dubai debt threat

www.reuters.com...

Just saw this:

Dubai Woes May Escalate to ‘Major Sovereign Default,’ Bank of America Says

Oops.

www.bloomberg.com...

Dow down some 140.

reply to post by Rockpuck

And this is the final nail in the coffin for good ol' Dubai. I will visit the place in a decade or so, just to see what happens to a city full of abandoned 5 star hotels and mega complexes.

By that time you'll need to suit up like Snake Plissken when you go

I don't know why people build things that are so unsustainable, and Dubai is probably the world's most socially hostile, most least self-sufficent city.

They will crash so hard they will go through the floor.

Amazing report...

Some good pics of some of the Dubai projects.

www.pbase.com...

Won't post individuals ones because may violate copyright


Seems Dubai watched "Field of Dreams" one time too many.

reply to post by loam




i enjoyed the video, thanks,

but i always see Max Keiser as a body double of Gilbert Gottfried in both appearance and voice...

Gilbert Gottfried (born February 28, 1955) is an American stand-up comedian and actor whose trademark is a distinctively loud, obnoxious, rasping, grating voice

www.en.wikipedia.org...


www.imdb.com...


no offense intended but... there must of been some connection to these two souls at some point of their cosmic journey...

I wonder if the Fed will bail them out too. I assume we'll never know anyway since their electronic printing presses operate without any oversight (from outside the Fed).

Maybe they should ask some money back from the US:

Washington has asked Saudi Arabia for 120 billion dollars, the United Arab Emirates for 70 billion dollars, Qatar for 60 billion dollars and was seeking 40 billion dollars from Kuwait.

sg.biz.yahoo.com...

This was from last year. There was a thread about it: www.abovetopsecret.com...

There was also a thread that the US did get the money but I can't find it nor news about it.

Fund managers will rotate dedicated money out of Dubai and into Abu Dhabi, Qatar and Egypt in search of a safe investment haven, as the Gulf emirate delayed billions of dollars of debt obligations this week.

International fund managers say they are considering reshuffling portfolios or even exiting Dubai after the government announced on Wednesday it would ask creditors at its flagship firms Dubai World and developer Nakheel to delay repayment of its debt.

www.reuters.com...

Edit:

Dubai's debt woes could further unhinge an already fragile U.S. commercial real estate, as it illustrates the importance of that tiny country to global investors in an increasingly interconnected world.

In the United States, Dubai World's portfolio includes several well-known properties, and the fallout could have a larger impact on the entire real estate market.

www.reuters.com...



[edit on 11/28/2009 by eldard]

No offence but these rich Arabs seem to think you can buy something and turn it into success and a paradise if you just splash out on money all in one go without giving the place some spirit and progression of development.

This was the case of Manchester City football club when an Arab business man brought it, he was planning to buy all the best football stars in the world to make a super team. But players refused and went else where, like Dubai Manchester City FC has no history and proves money can not buy the soul of the team, people rather go to teams that have worked their way up or maintained their respect through progressive measures.
It might change in future with the result of sympathy towards it.

They will come up with the money even if they have to go hat and hand to some of the rich they shelter there...

keep in mind why people and companies went there in the first place, no taxes no extradition treaties with other nations... those ultra rich who need to stay there or face charges by their home governments ie, Halliburton and her chairman and chief executive, David J. Lesar. People like that will have little choice but chip in for a save Dubai fund or be dragged to answer some rather uncomfortable questions by the Justice Department Securities and Exchange Commission... the money will come

Maybe it' a curse, even if you try and help something it will go wrong, it is never a clean exchange when dealing with life in the desert.

Japan's non-financial firms had some 7.5 billion dollars in uncollected bills from the Dubai government and its affiliated firms as of the end of October, the Nikkei business daily reported on Saturday.

About one billion dollars of the accounts receivable have gone unpaid past their due dates, with some of them more than a year overdue, the newspaper said, quoting Japanese government officials.

uk.news.yahoo.com...

Dubai World in creditor meeting

Dubai World is to meet creditors, including executives from HSBC and Royal Bank of Scotland, to discuss its debt repayment plan.

It is the first face-to-face meeting since Dubai World asked for an extension on its $22bn debt repayments in November...

...The BBC's Jeremy Howell in Dubai said it was in the bankers' interests to come to an agreement over the debt repayments.

"The last thing they want is for Nakheel [Dubai World's property business] to be driven into liquidation when they would get birdseed... it is in their interest to prop up the company in the hope that they might get their money back eventually" he said.

Source article

It's still difficult to avoid the conclusion that things are very much still in the balance in the medium to long term.