Skip to comments.Dubai doomsday -- Dubai real estate wipeout kicks off Stage 2 of the global depression
Posted on 12/08/2009 7:20:41 AM PST by dennisw
December 2, 2009
Nick note: You will find lots of pictures in this report. They show you the influence peddling, incredible waste and opulence created in Dubai. It is the world's greatest bubble economy it was built with your money and it has now wiped out. And it will continue to wipe out don't be fooled.
In my travels around the world, I've noticed something that seems to universally hold true. You may have noticed it too.
When their is row after row of construction cranes reaching into the sky, as far as the eye can see, you know its a bubble and is doomed. It must be some kind of pagan symbol, that angers the gods and brings on a great curse. Ultimately those places wipe out.
I saw it in New York in the 1960s. Houston in the 70s. Japan and Los Angeles in the 80s, and Russia in the 90s. More recently in most of the U.S., England, Ireland and Spain.
Now -- just when most people thought the economic crisis was over and we are in a green shoots recovery -- it's happening all over again. This time, on a scale never seen before.
Dubai, home of the world's most expensive real estate...tallest building...$1.5 billion Formula 1 race track...the would-be jewel and symbol of opulent wastefulness of the Middle East...is dead broke and not paying on its aw-sum debts. This time like other bubbles bursting it's taking the world financial system with it.
With virtually no accounting disclosure, Dubai was given endless derivatives loans to spend through it Sovereign Wealth Funds. It used the leverage from those derivatives to buy major assets the world over -- to create centers of decadence and waste around the globe. Incredible bubbles, with one central them... money losing.
Dubai World is one of Dubai government's investment arms. Through subsidiaries, it is engaged in five business segments: 1) transport and logistics, 2) dry-docks and maritime, 3) urban development, 4) investment and financial services, and 5) energy and natural resources. Click on the links I have included below if you would like more information on the subsidies. Its an amazing story.
Dubai Ports is the logistics and transport arm of Dubai World; it is the holding company for DP World and Economic Zones World.
I can see why the gods of finance are sending out visions of hope and optimism.
The sewage of Dubai has to be shipped out by tanker fleet every morning. I wonder where it goes.
One cannot live this decadently and not be part of the economic problems we face.
bingo. Capitalism is greed tempered by fear. If either element is missing or unbalanced, you no longer have capitalism.
Investing in Dubai always seemed like such a stupid move. Depending on those idiots is as good a bet as tiger woods staying faithful.
Eloquently described in the term "too big to fail".....quite possibly the single biggest scam to be thrust on the American people since Socialist (in)Security....but wait, the EPA has its' own plans......
Deceit is a big part of Arab culture. Trust an Arab at your own peril.....
LOL.... what is Tiger now... 7 under par?
Islam defines the Arab culture...and Islam is ALL about DOMINATION. Greed always gives birth to the desire for dominance. So why should we be surprised at the huge economic disparities in the Middle East and this scale of decadence in Dubai.
Is it just me, or does that resemble a mushroom cloud?
Putting for nine on current hole
That was probably the best hindsight being 20/20 post I have ever seen.
It does now and has more or less for the past 700 years, but the Arabs were deceitful traders long before Mohamed and Islam came along. I learned this after working in the Kingdom twice on telecom projects. Arabs view deceit as honorable if, when trading with someone, you are able to lie and get away with it long enough for the deal to conclude. Seems to be a big part of Russian culture, too. I noticed the similarity when I worked with a bunch of ethnic Russians on a project in Israel.
Even to us rank amateurs, something about the way they were developing did not pass the smell test (maybe it was the long line of sewage trucks??)
That being said, from what I’ve read about development there it appears that the Emir of Dubai was forced to respect the property rights of his citizens much more than the US Government must after Kelo.