Dubai and its effect on the world Vol. Spit the knowlege

[rob nike]

So im confused on what the issue is going on with Dubai...is everything they created in that place backfiring if so what about all them baller"kings" and so called rich citizens driving unique expensive vehicles and all that...i remember citizens bidding like millions for a friggin licenceplate..what actually is going on there its just not making since and how is it affecting us (USA)...someone please shine some knowledge thanks NT

ie.
ie.http://news.yahoo.com/s/a...0/ap_on_bi_ge/oil_prices

 

[selrahc123]

Nice avy

 

[jc08]

Dubai World, a government owned company, announced last Thursday morning that they are pushing back their debt payment in early December 2009 to May of nextyear. Dubai World has issued close to $60 billion in bonds and their main creditors (companies they owe money too) are European banks. Nobody really knows thetrue extent as to who is exposed, but this event may trigger other financial issues which can cause a ripple effect throughout financial markets again. This iswhy European markets were down about 3% across the board last Thursday and why US markets were down 1.5% Friday and the USD strengthened.

 

[rexanglorum]

The UAE, the counrt in which Dubai is located, made a ton of money from high oil prices this decade and they put over a trillion dollars of that money intotheir national trust fund or Sovereign Wealth Fund (SWF). This SWF was supposed to invest that money wisely and turn Dubai into the Wall Street of the MiddleEast.

These SWF are very opaque so no knew what was actually being done with the money and now that the Dubai SWF is unable to repay its scheduled debt repayments,investors around the world asking what were they doing with that money (probably buying mortgage backed securities). Other countries have SWF's so that hascaused worries beyond the scope of Dubai and even more importantly the fear is that Dubai and every state that got fat from high energry prices is a financialhouse of cards that will collapse whenever oil price fall for a while. In the late 1970's all sorts of third world, oil rich "petrol states" wentdeep into debt, assuming they would be able to pay it off from revenues from selling oil at high prices. When oil prices dropped in the 1980's those petrolstates were insolvent and defaulted their bonds and investors lost a lot of money.

 

[lrrr]

i thought Dubai had very little oil..

 

[razzle dazzle]

That place is going absolutely nuts... Yesterday they were building 7-star hotels with china made from gold to underwater hotels, and the next day they'rebuilding artificial islands?

What's next?!

 

[vancity74]

I knew DubaiWorld was effed the second I saw the CityCenter development last year in Vegas.

Good riddance I say.

 

[rob nike]

thats incredibly scary

 

[prostaffer]

The issue is they built so much into these buildings and they kept rolling money into more buildings and more attractions without any tourism ever reallystarting or appearing. I can't wait til this turns into a ghost town. Maybe make is a giant paintball park. I can just imagine them making a rainbow six:dubai. That would be greater than vegas....

 

[pervis ellison]

Karma?

 

[los yankees]

I will never understand the theory behind a Central Banking system. Failure on top of failure on top of failure.

 

[mc otaku]

Originally Posted by Pervis Ellison

Karma?

indeed

 

[blazekicks]

damn i wanted to vist dubai. hope this is a lesson for them stop buildiing so many projects without tourism or sometype of revunue to back it up.

 

[langfor5]

Ahhh not to mention they are in the MIDDLE OF A DAMN DESERT and at the rate they are going they will eventually run out of water.

 

[inine5]

Originally Posted by BlazeKicks

damn i wanted to vist dubai. hope this is a lesson for them stop buildiing so many projects without tourism or sometype of revunue to back it up.

excessive overspending?.... sounds like a case of antoine walker

 

[funkdoctor73]

I don't thin people understand the importance of Dubai. Dubai was considered a emerging market, but they didn't own oil like the other countries, theyowned property. People from all over the country came to marvel at Dubai's creations, and other sought employment. Dubai believed they would become THEEtourist attraction and spent heavily on buildings and property. With the economic crisis of the past years, they were unable to get funding to finish projectsand people had less disposable income to spend. Dubai crumbed under the weight of its own debt.

Angel