Discussion in 'Economics' started by Shagi, Nov 25, 2009.
and its a non-event in the western media
Amazing property developments... Their laws have Debtor's prisons. Better run if your upside down....
There hasn't been any default yet... Definitely not a sovereign one, and not even a corp one thus far.
The FT has been talking about the Dubai issue quite a bit recently. See here, for example:
they have asked for six months.
the bubble is about to burst
many decades of reckless expenditure and outrageous speculation is about to take its toll and the western banks carry many of those assets in their books. expect more bail out in the coming months. i know many banks hold dubai debt in their books and that many other countries are at risk of not fulfilling their sovereign obligations.
is the next wave of the crisis about to start?
i never thought of the debt in dubai as a catalyst for further collapse in the west but i guess you right. thirty five billion of fifty nine billion is enormous if banks over here lose that it will be round two.
All the high-beta, shiny stuff goes down hardest.
The question is: after Dubai what will go next?
Dubia is a signal. Watch and see how this play's out. The first reaction was minimal......but over the next few months....we could see deep red in all markets across the world.
i am thinking of a castle of cards situation here.
a default on its debt by dubai could put in distress some western banks.
the governments will have to rescue them as they are "too big to fail".
the middle class will have to pay the bill while the central banks will keep printing money, thus adding to the imbalances that have put us where we are at this point.
the system (fiat currency) might be approaching a point of no return.
cant see any alternative explanation for why central banks are buying gold.
When the news was announced yesterday there was no market reaction - Today everyone wakes up - shocking
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