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 ...
26th November 2009, 02:15 PM #1
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.
26th November 2009, 02:55 PM #2
"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."
26th November 2009, 03:35 PM #3
They still have debtor's prisons!
Originally Posted by jinnantonnix
27th November 2009, 01:47 PM #4
apparently so. Don't think it's a great place to be if you've lost your job and owe money.
Originally Posted by somabc
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.
28th November 2009, 07:20 PM #5
Wow RBS made a lot of bad choices! Yet we just pile more money into the company, and no-one goes to prison.
28th November 2009, 07:45 PM #6
Record losses but still bonus' are paid out... bonus' for what?
Originally Posted by localzuk
28th November 2009, 08:12 PM #7
Originally Posted by jinnantonnix
i can't help thinking the world would be a far better place without all these explicit guarantees and assumptions about bailouts.
if worst came to worst, the emirate could be bailed out by Abu Dhabi, its oil-rich neighbour.
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.
29th November 2009, 06:50 PM #8
That's exactly what I meant! You'll find the same attitude across the middle east.
Originally Posted by torledo
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