dont know what u're trying to get at but what i know is this- emerging economies like dubai's are excessively over-leveraged and creditors are growing weary. i blame the americans who have peddled some of these neo-liberal reforms in a get rich, quick scheme of sorts on these countries who werent prepared for takeoff. nevertheless, i think dubai might be an aberration and not the rule because as everyone knows- there economy wasnt diversified and they hedged all their bets on construction to build a shopping mall city/state.
Judge: Mr. Cirroc, are you ready to give your summation? Cirroc: [ stepping out] It's just "Cirroc", your Honor.. and, yes, I'm ready. [ approaches the jury box ] Ladies and gentlemen of the jury, I'm just a caveman. I fell on some ice and later got thawed out by some of your scientists. Your world frightens and confuses me! Sometimes the honking horns of your traffic make me want to get out of my BMW.. and run off into the hills, or wherever.. Sometimes when I get a message on my fax machine, I wonder: "Did little demons get inside and type it?" I don't know! My primitive mind can't grasp these concepts. But there is one thing I do know - when a man like my client slips and falls on a sidewalk in front of a public library, then he is entitled to no less than two million in compensatory damages, and two million in punitive damages. Thank you.
an important part of this story is that we dont understand the true effect of this crisis until the markets open up in america on monday. for those not in our hemisphere- its american thanksgiving and the lucky bastards get a 4 day weekend.
Markets were open here today. Dow dropped 1.5% I don't see it as some sort of major and immediate sign of crisis the way Bear Stearsn Lehman and AIG were last year, but saying it's not a hide the money under the bed crisis doesn't mean it's a good thing either. Generally speaking, if South Korea, Japan and China are getting hosed, it's not a good thing for anyone.
Europe was invested heavily in Dubai banks. The question will be how invested where US banks in those European banks?' HSBC has the most holdings.
It's not like Dubai is defaulting on their loans - YET. Even if they did, the $60B isn't even 10% of what we've spent so far on bailouts for the banks. Maybe the big banks will have to sell off some of the big banks they bought with the bailout money to cover any defaults by foreign governments.
