anyone get caught in the Dubai debacle? well any opinion why everyone believes that Dubai is not a debacle? why we should believe their lies?
Heres the thing about Dubai...They should be making money hand over fist, but like an article that someone linked recently, their management is very incompetant. Largely because the people at the top are emeritis not only getting way too much money for what they do, but that they make some bad business decisions. I mean...that can be the only problem. You have to be really bad at business to not prosper in that type of economy over there. Over there, you have Cheap labor (at the bottom of the ladder anyway) High retail sales prices A barrage of tourists flooding in left and right to keep spending more and more money there. The only way to lose money in an environment like that is through bad business decisions at the top.
I agree, you gotta be an idiot not to make some return on $60 billion or be unable to hide the fact that you are not. In any case, I just talked to a friend who works at Dbank in dept capital markets and he recently went to dubai and he told me that the whole place is construction on hold. That usually means they have no cash flow to keep the projects running and need more investment money to complete the projects. This could mean that they did not sell a lot of property off of plans and were using working capital to pay off debt payments and were hoping to complete the project or hoping sell more off plans at a later date. Either way they mght need more than a debt restructure. They may need a hot capital injection but they lie
Arab regimes are utterly corrupt and incompetent. No matter how good and starting terms or the amount of resources they will mess it up eventually. Anybody really believes we can also make a dent in Afghanistan corruption and incompetence and be on our merry way in 2 years?