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Thursday, November 26, 2009
3:57 PM TweetThis
  • BBC's Stephanie Flanders wonders if Dubai is about to become the world's biggest not-too-big-to-fail: "Everyone in the markets thought that, in the end, the federal government in Abu Dhabi would stand by all of Dubai's bad bets. Apparently, they won't."
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This news story has 6 comments:

     
  • Looking at the way world markets ended, and the S&P futures..Commodities Down..Dollar UP... Emerging Markets hit especially hard... Yea! I would say the Dubai Government is not, or cannot. If they do attempt to stand behind the debt they will have to unload all kinds of investments I would imagine.
    2009 Nov 26 05:55 PM Reply
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  • Curious. When these loans are made, banks get the profits and the commissions, but when they go bad, the taxpayers are somehow required to pay the cost.
    If we the taxpayers are required to pay, then we should be on the boards of these banks and have a veto over these loans---a veto which should be exercised on a regular basis.
    The government of Abu Dhabi doesn't want to stand behind these bad bats----why should I? Given a choice, I will not.
    2009 Nov 26 05:58 PM Reply
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  • Why don't the debt holders foreclose on the millions of unsold/unrented square feet of luxury crap they've built for his highness. The place barely has laws to deal with basic international trade leave alone the sophistication needed to conduct arbitration in cases of defaults. Greed begets greed and nothing like a sward-wielding tribesman to call these thieves in suits for what they are. I'm all in favor of some limbs flying off these bankers who lend 200-300% on projects that had zero feasibility. Come to think of it, a systemic failure of the European Banking System would be the ultimate revenge Dubai can serve on a silver platter for such arrogant colonial powers who continue to exploit every corner of the world.
    2009 Nov 26 06:40 PM Reply
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  • I don't think its clear just yet what Abu Dhabi will do. They put up billions earlier this month, and may yet step in again. There is more to this than we are being told at this point...
    2009 Nov 26 09:00 PM Reply
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  • I'm thinking that Abu Dhabi has a lot to lose if they let Dubai default on these bonds. They will probably bail them out; shouldn't be too much trouble considering the amount of oil money they have.
    2009 Nov 26 10:37 PM Reply
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  • Just the fact that this has made the news IMO is shocking.
    For this not to have been taken care of quietly between Abu Dhabi and Dubai is the greatest tell.
    The Emirates are not as United as they would like us to think at times.
    Did they really think the Indoor ski slope and all of those man made islands were such a great idea.
    IMO the place is still an overpriced $hithole built on the backs of tens of thousands of exploited East Indians and Bangladeshies.

    Welcome to the real world UAE
    2009 Nov 26 11:03 PM Reply
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