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Friday, November 27, 2009 8:27:14 AM
DUBAI - one of the nightmares in the markets is that sorverign nations will start defaulting.
The question people want to know is that is this the first of many or a one off?
Duabi seems to be poor in natural resources, relative to it's other UAE friends - and my guess is that they were allowed to run up debts with the expectation that it would get help - well it didn't get it.
To be honest it looks like a white elephant - they have been building so much in Dubai in the hope that "they will come". It looks like an economy built on sand. All construction and no business.
I think the market, when settled, will take this to be a risk for the lending banks alone. Anyway what's 60 Billion these days?
rich
The question people want to know is that is this the first of many or a one off?
Duabi seems to be poor in natural resources, relative to it's other UAE friends - and my guess is that they were allowed to run up debts with the expectation that it would get help - well it didn't get it.
To be honest it looks like a white elephant - they have been building so much in Dubai in the hope that "they will come". It looks like an economy built on sand. All construction and no business.
I think the market, when settled, will take this to be a risk for the lending banks alone. Anyway what's 60 Billion these days?
rich
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