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.
10 over par at last count..
Interesting...never knew that. It's funny how one assumes too much about cultural morals when encountering alien cultures.
But Dubai was worse - it was NEVER real. It was a city built with all the reality of a Hollywood back lot - all appearance - no reality.
I went to school with a lot of Arabs, too, both in undergrad and grad school. Most of the Arabs cheated their way through. Everybody knew it was happening, including the profs. This was nigh onto 30 years ago and PC was alive and well then just as it is now. I never could prove it, but I'd bet the profs were told by the university to look the other way. Arabs who "study" abroad generally have deep pockets.....
On a side note I heard a guy call into the Bill Bennett show yesterday who said he was a construction manager for the largest contruction firm in NYC. They book their work out a year in advance and he says that as of right now they have nothing booked. Nothing.
Yeah...he made a lot of errors like that, a lot of typos and misspellings but he seemed to know what’s going on in Dubai and how their collapse will effect the entire global economy.
But exactly what is the great opportunity? He’s boostering for the dollar. IS he saying to buy treasuries? I’m a financial idiot and have no idea what to do with what little I have. I refuse to buy gold...if the world falls apart I don’t see how I can buy a loaf of bread with gold stocks or coins. What to do? What to do?
Exactly the same thing has been said about Chinese culture right here on this website.
And is endemic in Jewish culture witness Bernie Madoff and Christian culture witness Barack Obama
Dubai today is Houston circa 1980 something.
Fear not, it will all pass
I wouldn't say that Chinese culture is necessarily corrupt. Their leaders are, but not the average guy on the street. Arabs, OTOH, have told me deceit is a part of their culture. Hard to argue the point when they tell you this, then you witness it for yourself in their country.....
That’s the best explanation of the looming new debt crisis that about to hit us that I’ve seen to date.......
It’s a rant but he makes a great points. He is a anti-gold bug and says the USD will be refuge from the storm. Just last January the USD was very strong and gold was down. Mish Shedlock and others were saying the USD is the ultimate refuge in a deflation
Since the the USD has tumbled and gold is up 400$ or more. Gold is then the refuge from inflation. But for the last few days this trend is in reverse. We have a stronger USD and stronger stock market
Two years ago I used to think Dubai was insane but real when I read about their billion dollar indoor ski slope. I figured it was loony but they could afford it
Now it seems Dubai was built on Citibank money and borrowing from other foreign suckers. Ripping off the infidel is OK if Muhammad is your false prophet
While I haven't had a problem with any individual Chinese, I have seen multiple companies involved in business dealings with China find out that after sharing their technology they were getting nothing out of the deal. And obviously when you buy any food, drug, cosmetic, chemical, etc. from China, you can't be sure what you are getting without rigorous testing.
So it's caveat emptor pretty much everywhere. I don't doubt that deceit is part of Arab culture. But I'm not sure one can say that this is a unique feature.
......The claim was that the ability to put one over the other party in a business transaction is a universally accepted, expected, and even admired part of Chinese culture......
And Korean as well
Chinese drywall and toothpaste.
It is particularly honorable to cheat non-Arabs. Shows you are smarter. Only a fool treats infidels fairly.
Imagine if they had bought our ports.