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Dubai doomsday -- Dubai real estate wipeout kicks off Stage 2 of the global depression
rickackerman. ^ | Dec 2009 | Guarino

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.

Dear Larry,

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.

EXCERPTED



TOPICS: Business/Economy; Crime/Corruption; Political Humor/Cartoons
KEYWORDS:

1 posted on 12/08/2009 7:20:42 AM PST by dennisw
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To: dennisw

I can see why the gods of finance are sending out visions of hope and optimism.


2 posted on 12/08/2009 7:24:19 AM PST by bsf2009
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To: dennisw

The sewage of Dubai has to be shipped out by tanker fleet every morning. I wonder where it goes.


3 posted on 12/08/2009 7:25:48 AM PST by bsf2009
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Comment #4 Removed by Moderator

To: bsf2009
Dubai sewage dumping row
5 posted on 12/08/2009 7:29:50 AM PST by bsf2009
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To: dennisw
When their is row after row of construction cranes reaching into the sky.....

sheesh!

6 posted on 12/08/2009 7:30:35 AM PST by MadelineZapeezda (Promoted by God to be a mother!!!!!!!!!!!!!!!!...................Thanks, Susan!)
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To: dennisw
GREED! plain and simple...Greed is at the root of today's economic woes. Capitalism takes the hit for this, unfortunately, and the greedy SOBs that really cause the huge disparities in the economies of the world get away with murder.

One cannot live this decadently and not be part of the economic problems we face.

7 posted on 12/08/2009 7:33:30 AM PST by ThomasMore (Patrick Henry and Joe Wilson...Patriots past and present!)
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To: ThomasMore

bingo. Capitalism is greed tempered by fear. If either element is missing or unbalanced, you no longer have capitalism.


8 posted on 12/08/2009 7:38:14 AM PST by wombtotomb
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To: dennisw

Investing in Dubai always seemed like such a stupid move. Depending on those idiots is as good a bet as tiger woods staying faithful.


9 posted on 12/08/2009 7:42:17 AM PST by Tolsti2
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To: wombtotomb
If either element is missing or unbalanced, you no longer have capitalism.

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......

10 posted on 12/08/2009 7:42:25 AM PST by Thermalseeker (Stop the insanity - Flush Congress!)
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To: Tolsti2
Depending on those idiots is as good a bet as tiger woods staying faithful.

Deceit is a big part of Arab culture. Trust an Arab at your own peril.....

11 posted on 12/08/2009 7:44:42 AM PST by Thermalseeker (Stop the insanity - Flush Congress!)
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To: dennisw

12 posted on 12/08/2009 7:45:39 AM PST by onedoug
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To: Tolsti2
Depending on those idiots is as good a bet as tiger woods staying faithful.

LOL.... what is Tiger now... 7 under par?

13 posted on 12/08/2009 7:48:28 AM PST by ThomasMore (Patrick Henry and Joe Wilson...Patriots past and present!)
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To: Thermalseeker
Deceit is a big part of Arab culture.

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.

14 posted on 12/08/2009 7:53:31 AM PST by ThomasMore (Patrick Henry and Joe Wilson...Patriots past and present!)
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To: onedoug

Is it just me, or does that resemble a mushroom cloud?


15 posted on 12/08/2009 7:55:08 AM PST by Renderofveils (My loathings are simple: stupidity, oppression, crime, cruelty, soft music. - Nabokov)
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To: ThomasMore

Putting for nine on current hole


16 posted on 12/08/2009 7:57:09 AM PST by maine yankee
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To: Tolsti2

That was probably the best hindsight being 20/20 post I have ever seen.


17 posted on 12/08/2009 7:58:39 AM PST by thefactor (yes, as a matter of fact, i DID only read the excerpt)
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To: ThomasMore
Islam defines the Arab culture...

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.

18 posted on 12/08/2009 8:01:37 AM PST by Thermalseeker (Stop the insanity - Flush Congress!)
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To: dennisw

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.


19 posted on 12/08/2009 8:02:32 AM PST by Buckeye McFrog
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To: dennisw
Simply amazing.. the scope of it all...
Nick promises the greatest money making opportunities from all this.. in the article.. Could be true.. if you knew how to capitalize on it..
20 posted on 12/08/2009 8:08:03 AM PST by hosepipe (This propaganda has been edited to include some fully orbed hyperbole....)
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To: ThomasMore
[ what is Tiger now... 7 under par? ]

10 over par at last count..

21 posted on 12/08/2009 8:09:54 AM PST by hosepipe (This propaganda has been edited to include some fully orbed hyperbole....)
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To: hosepipe
What is that stealing the copper out of the empty buildings.
22 posted on 12/08/2009 8:12:14 AM PST by org.whodat
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To: Thermalseeker
Arabs view deceit as honorable

Interesting...never knew that. It's funny how one assumes too much about cultural morals when encountering alien cultures.

23 posted on 12/08/2009 8:19:56 AM PST by ThomasMore (Patrick Henry and Joe Wilson...Patriots past and present!)
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To: dennisw
Massive construction's the shoeshine boy giving stock tips.

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.

24 posted on 12/08/2009 8:20:53 AM PST by GOPJ (Climategate-Who do YOU trust? MSM journalists-Used car salesmen-Alarmist scientists-None of above?)
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To: ThomasMore
Interesting...never knew that. It's funny how one assumes too much about cultural morals when encountering alien cultures.

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.....

25 posted on 12/08/2009 8:29:09 AM PST by Thermalseeker (Stop the insanity - Flush Congress!)
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To: dennisw
That's the best explanation of the looming new debt crisis that about to hit us that I've seen to date.

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.

26 posted on 12/08/2009 8:42:08 AM PST by pgkdan ( I miss Ronald Reagan!)
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To: MadelineZapeezda

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.


27 posted on 12/08/2009 8:44:24 AM PST by pgkdan ( I miss Ronald Reagan!)
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To: Renderofveils
Is it just me, or does that resemble a mushroom cloud?

Toilet brush.

28 posted on 12/08/2009 8:46:54 AM PST by Petronski (Global warming is indeed man-made: it was created by man-made manipulation of the data.)
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To: hosepipe

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?


29 posted on 12/08/2009 8:51:28 AM PST by pgkdan ( I miss Ronald Reagan!)
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To: Thermalseeker
Deceit is a big part of Arab culture.

Exactly the same thing has been said about Chinese culture right here on this website.

30 posted on 12/08/2009 8:53:34 AM PST by wideminded
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To: wideminded

And is endemic in Jewish culture witness Bernie Madoff and Christian culture witness Barack Obama


31 posted on 12/08/2009 8:55:41 AM PST by bert (K.E. N.P. +12 . Lukenbach Texas is barely there)
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To: Tolsti2

Dubai today is Houston circa 1980 something.

Fear not, it will all pass


32 posted on 12/08/2009 8:57:03 AM PST by bert (K.E. N.P. +12 . Lukenbach Texas is barely there)
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To: wideminded
Exactly the same thing has been said about Chinese culture right here on this website.

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.....

33 posted on 12/08/2009 8:58:57 AM PST by Thermalseeker (Stop the insanity - Flush Congress!)
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To: pgkdan

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


34 posted on 12/08/2009 9:38:39 AM PST by dennisw
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To: GOPJ

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


35 posted on 12/08/2009 9:42:18 AM PST by dennisw
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To: Thermalseeker
I think the discussion of deceit in Chinese culture occurred about the time of the melamine/food-tainting scandals. 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.

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.

36 posted on 12/08/2009 9:57:10 AM PST by wideminded
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To: wideminded

......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


37 posted on 12/08/2009 9:58:54 AM PST by bert (K.E. N.P. +12 . Lukenbach Texas is barely there)
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To: bsf2009
The sewage of Dubai has to be shipped out by tanker fleet every morning. I wonder where it goes.

Chinese drywall and toothpaste.


Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

38 posted on 12/08/2009 9:59:10 AM PST by The Comedian (Evil can only succeed if good men don't point at it and laugh.)
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To: Thermalseeker

It is particularly honorable to cheat non-Arabs. Shows you are smarter. Only a fool treats infidels fairly.


39 posted on 12/08/2009 10:57:11 AM PST by karnage (worn arguments and old attitudes)
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To: bsf2009
The sewage of Dubai has to be shipped out by tanker fleet every morning. I wonder where it goes.

Imagine if they had bought our ports.

40 posted on 12/08/2009 10:57:54 AM PST by dfwgator
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To: bert
"......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......"


As a business owner that contracts with chinese manufacturing I see a lot of 'cheating' over time. I buy a lot of cables, fans and computer components. What you initially see may not be what you get later. An example given me, that applies across a wide spectrum of products: is tennis shoes.

You spec out a tennis shoe with the president of a chinese manufacturing company. Your deal is for shoes of 'x' quality, made to your specifications, over a period of 2 years. Initial production and shipments not only meet your expectations but exceed them in promptness and QA.

Then comes the QA Slippage. Starts with the sole of the shoe, which is supposed to be spec'd out at 6 MM thick - is now 4.5 MM. You don't even notice because the shoe looks the same. Customers are not as happy with them though and sales drop a little. Then the laces, instead of being 80% polyester are now cheap garbage that looks the same but lasts your customer a couple weeks.

The president of the manufacturing industry you contracted with is down at the executive club merrily talking up his wonderful joke on you with his fellow business owners. He is PROUD of his screwing over of what we would consider basic business ethic, but which he is culturally rewarded for doing the opposite. He is more proud of the cheating he gets away with than he is worried about you not contracting with him next time. There seems to always be another sucker in the channel.
41 posted on 12/08/2009 11:29:01 AM PST by Borderline
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To: dennisw
I haven't seen anything in any of the TB publications which I regularly receive, but I suspect Dubai's financial problems could be the final nail in the coffin of the thoroughbred business in KY which is already in serious decline (some stud fees for top stallions have been cut in half for '10 with few takers since the sale yearlings this year with the exception of the handful of top bloodlines are off over 40%.) The buyer or back-up bidder for the most expensive yearlings is Sheik Mohammed, the ruler of Dubai.

Even if his personal fortune is in no way effected by his country's financial crisis, I suspect he will pull back on buying the most expensive TBs here, in Europe, Australia and S.A. for the sake of how it will look to his subjects. He also owns millions of acres, the top horse farms in all the aforementioned places and supports a payroll of thousands of employees working worldwide caring for the horses.

42 posted on 12/08/2009 12:01:12 PM PST by penowa
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To: Borderline
I buy a lot of cables, fans and computer components. What you initially see may not be what you get later. An example given me, that applies across a wide spectrum of products: is tennis shoes.

Is there such a thing as A quality and B quality versions of the same "made in China" computer component or accessory?
I've often thought that when I see a computer component sold with rebates or steep discount that a company is getting rid of a batch or run of B quality items

43 posted on 12/08/2009 12:07:25 PM PST by dennisw
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To: dennisw
"Is there such a thing as A quality and B quality versions of the same "made in China" computer component or accessory?


Not that I have ever seen formally stated that way. What happens is, over time, your product quality deteriorates and you have to look for a new builder. We are always looking for it. However, we also have some top notch suppliers: For instance, Lycom in Taiwan, builds a bunch of boards and cards for us and is always top of the heap and as good as anything made anywhere.

You would think that if we had issues with doing business in China that we would use domestic suppliers. Well , for what we can get here, we do get here! But there are no cable manufacturers making what we buy in the US. I would love to bring it home. In my opinion it is inevitable that it comes home or just disappears entirely as the 'global' economy is about to go up in smoke. However, the other side of that coin is: what US company is stupid enough to build onshore capability with Obama and the Dems running the insane asylum? Have to be fools to pay million dollar bribes to US officials when thousand dollar bribes gets the same thing offshore. And US unions are frankly the enemy of this country.
44 posted on 12/08/2009 1:47:03 PM PST by Borderline
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To: Borderline

Thanks much for the information

Let me put it this way
Apple enthusiasts like to brag about Apple’s better hardware

Can Apple be more demanding and get away with it? And go to Asus for example and say -— “We want you to make Quadro FX 1700 Graphics cards for us with a lower defect rate then what you supply others. We want better cards from a better run than what you give Dell or sell through NewEgg”


45 posted on 12/08/2009 2:13:07 PM PST by dennisw
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To: pgkdan
[ I’m a financial idiot and have no idea what to do with what little I have. I refuse to buy gold. ]

True..........

46 posted on 12/09/2009 3:34:43 PM PST by hosepipe (This propaganda has been edited to include some fully orbed hyperbole....)
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To: dennisw
"Can Apple be more demanding and get away with it?"


Apple, or any other OEM can make deals for a complete different version of anything. Made to their spec and designed and built to meet their demand. It just costs money. Apple, or Dell, or whoever will make back room deals with anyone on anything. They can even have their own logo and serial number on them. The price is much lower than retail, not just because they buy in huge quantity, but because Apple does the support on it. This holds true for hard drives, memory, graphics cards and anything else.

The biggest reason the hardware is traditionally longer lived is more that Apple controls every detail and supports every component directly. That is more important than it is that the hardware itself is better, although that is a part of it - Apple tries to do high end only. However, the biggest reason is because Apple controls it there are fewer variations to have to maintain support for and MUCH fewer low end platform and component manufacturers tossing junk into the marketplace. Since there is no $600 bottom end platform there isn't competition at that end - no bottom feeders at all.

Apple tries very hard to keep the quality up at the top end. That means a lot in the long run. That said, so does ASUS.
47 posted on 12/10/2009 8:32:54 AM PST by Borderline
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To: wombtotomb; ThomasMore

“An honest man is one who knows that he can’t consume more than he has produced,” original source: Part II, Section 2, pages 387-391 of the paperback Atlas Shrugged.

I tend to like this moral principle regarding money and capitalism. All the rest is looting and mooching. Equating greed to capitalism is a false argument. Greed is the motivation of looters.


48 posted on 12/10/2009 8:44:37 AM PST by EBH (it is the Right of the People to alter or to abolish it, and to institute a new Government)
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