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General Chat Thread, Dubai goes bust! in General; BBC News - Dubai under scrutiny after debt payment delay Ooops. Some pretty bad financial (mis) management, and a large ...
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    Dos_Box's Avatar
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    Dubai goes bust!

    BBC News - Dubai under scrutiny after debt payment delay

    Ooops. Some pretty bad financial (mis) management, and a large lack of surpirse from the international finance industry.

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    tech_guy's Avatar
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    Yeooowwwwwwww:

    "Ben Thompson, business reporter, Dubai
    Financial markets and businesses are closed here for the Eid holiday - some suggest that's why the announcement was made when it was.
    It's sparked real shock that things have come to this. Just 12 months ago, few could have believed the city would find itself asking for this lifeline. It seems Dubai is now paying the price for living on borrowed money.
    Of course, everyone knew the boom couldn't last forever, but no-one expected it to collapse when, or as suddenly, as it did. Property prices have more than halved over the past year and investors have fled.
    The official figure for Dubai's debt is $80bn, but talk to anyone here and the feeling is the figure is much higher. Unpaid bills, abandoned cars and empty buildings are all too obvious. Some analysts put the real figure at close to $160bn."

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    somabc's Avatar
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    Quote Originally Posted by jinnantonnix View Post
    I thought this started to happen ages ago. I remember seeing a news article showing all the abandoned cars at the airport left by people doing a runner from the country. Apparently defaulting on your debts doesn't go down too well in Saudi.
    They still have debtor's prisons!

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    torledo's Avatar
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    Quote Originally Posted by somabc View Post
    They still have debtor's prisons!
    apparently so. Don't think it's a great place to be if you've lost your job and owe money.

    update: sorry, i thought you meant dubai having the debtors prisons. I'm sure i've read some anecdotals where dubai authorities
    haven't looked kindly on people who owe money without ability to repay.
    Last edited by torledo; 27th November 2009 at 01:52 PM.

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    localzuk's Avatar
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    Wow RBS made a lot of bad choices! Yet we just pile more money into the company, and no-one goes to prison.

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    Theblacksheep's Avatar
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    Quote Originally Posted by localzuk View Post
    Wow RBS made a lot of bad choices! Yet we just pile more money into the company, and no-one goes to prison.
    Record losses but still bonus' are paid out... bonus' for what?

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    torledo's Avatar
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    Quote Originally Posted by jinnantonnix View Post
    But some good news...




    Dubai debt fears threaten credit crunch 2 — and RBS is exposed - Times Online

    Oh wait - that's bad news, isn't it?
    if worst came to worst, the emirate could be bailed out by Abu Dhabi, its oil-rich neighbour.
    i can't help thinking the world would be a far better place without all these explicit guarantees and assumptions about bailouts.

    As brown says, the global economy recovered from CC1 via unprecedented monetary and fiscal stimulus......so this comparatively trifling amount which is to be delayed/rolled over, shouldn't be a systemic risk.

    But at what point do banks and investors start taking the haircut due for some of the daft decisions made during these credit fuelled boom. Clearly twerps like brown don't understand the concept of moral hazard.....otherwise he wouldn't be strutting around promising more state guaranteed covering of backsides where necessary.

    RBS is just a basketcase, and principal lender for basketcase investments during the irrational exuberance. quel surprise.

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    somabc's Avatar
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    Quote Originally Posted by torledo View Post
    apparently so. Don't think it's a great place to be if you've lost your job and owe money.

    update: sorry, i thought you meant dubai having the debtors prisons. I'm sure i've read some anecdotals where dubai authorities
    haven't looked kindly on people who owe money without ability to repay.
    That's exactly what I meant! You'll find the same attitude across the middle east.

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