Dubai Defaults

edgex

Revenge_of_the_Red_Devil wrote: »

Presumably in the end they still will. I reckon this is a punishment by the more fiscally conservative Abu Dhabi to the more reckless Dubai - the equivalent to letting your stupid younger brother stay in jail for a night to teach him a lesson about future stupidity before going to get him out.

i think theyll find the lesson to be a lot harsher than that

Dubai has no economy, its a complete fantasy based on money floating around looking for anything to invest in, inflation, cheap construction & 'luxury' selling prices.
its a classic bubble


the rest of the UAE can quite easily sit aside & watch the place implode, knowing that they themselves are relatively protected as they actually have a revenue stream, ie oil
then they can pick up the assets left in Dubai for mere pennies, knowing full well that no one else wants them, & the creditors will just want to offload them.

Revenge_of_the_Red_Devil

edgex wrote: »

the rest of the UAE can quite easily sit aside & watch the place implode, knowing that they themselves are relatively protected as they actually have a revenue stream, ie oil
then they can pick up the assets left in Dubai for mere pennies, knowing full well that no one else wants them, & the creditors will just want to offload them.

at what price to the UAE's reputation? They know their oil won't last forever, and they'll need something to keep them from fading into obscurity and poverty. Dubai is a step in that direction. Letting it fail completely would be like cutting your nose off to spite your face. It just needs reigning in a little..

Eric_Pisch

Revenge_of_the_Red_Devil wrote: »

at what price to the UAE's reputation? They know their oil won't last forever, and they'll need something to keep them from fading into obscurity and poverty. Dubai is a step in that direction. Letting it fail completely would be like cutting your nose off to spite your face. It just needs reigning in a little..

you can see they are gearing up for when the oil has gone, just look at the burj dubai which is what 40% taller than any other building :eek:

just take a look at this cam shot from the top, oh and those tiny tall buildings down below are on the whole taller than canary wharf lol

http://www.youtube.com/watch?v=8eU5QpFZAfo

and if you jumped you would have 13 seconds to text somebody

StevieJ

StevieJ wrote: »

Sheikh Mohammed will have to sell some of his equine gold

This was yesterday
The cost of protecting Dubai bonds from default traded at 317 basis points today from a peak of 977 in February, five-year credit-default swap prices show. The contracts get cheaper as perceptions of credit quality improve.

And today

LONDON, Nov 26 (Reuters) - Dubai five-year credit default swaps have jumped to al
most 470 basis points on Thursday, a jump of 30 bps on the previous session's close, CDS monitor CMA Datavision said.

http://www.reuters.com/article/marketsNews/idUSGEE5AP0KQ20091126

Some interesting background
http://www.smh.com.au/business/world-business/dubais-economy-no-oasis-20091125-jr3y.html

And today 27th Nov

Dubai five-year CDS were quoted at 670.1 basis points versus a Thursday close of 541.2 bps and compared with around 300 bps just before the Wednesday announcement by the emirate that it would seek to restructure debt held by two leading state-run corporates.

http://uk.finance.yahoo.com/news/gulf-debt-insurance-costs-surge-dubai-5-year-cds-up-129-bps-reuters_molt-ef12c1edf36b.html?x=0


http://www.smh.com.au/business/world-business/dubais-economy-no-oasis-20091125-jr3y.htm

Never was an article so well timed Wed 25th Nov :eek:

worldtraveller

Dubai 1990




Dubai now



Go figure! :rolleyes:

StevieJ

And

What started in 1992 with a handful of horses, has evolved into the world's foremost international racing stable.

http://www.godolphin.com/AboutUs.aspx

lostinrates

StevieJ wrote: »

And

What started in 1992 with a handful of horses, has evolved into the world's foremost international racing stable.

http://www.godolphin.com/AboutUs.aspx

My giggle for the day is the racehorses who ''congregate here to enjoy the mild winter climate and prepare for the season ahead.''. Yes, thats what they want, to get on a plane and spend the mild winter in Dubai . The equine hospital facilities are superb, and the staff to horse ratio is amazing...but the horses don't seem terribly relaxed. What is good service to a sheik is not so relaxing for a horse, even the most spoiled horses in the world.

StevieJ

lostinrates wrote: »

My giggle for the day is the racehorses who ''congregate here to enjoy the mild winter climate and prepare for the season ahead.''. Yes, thats what they want, to get on a plane and spend the mild winter in Dubai . The equine hospital facilities are superb, and the staff to horse ratio is amazing...but the horses don't seem terribly relaxed. What is good service to a sheik is not so relaxing for a horse, even the most spoiled horses in the world.

They used to think that at the beginning of the season if they could bring the horses on in their coat etc, there would be some advantage over the others and they could pick off some big races early in the season e.g. 1000/2000 guineas.

Nikkster

Views from Dubai: 'The end of the dream'

http://news.bbc.co.uk/1/hi/world/middle_east/8381363.stm

As someone who hadn't really heard anything (or even wondered about) the economy in Dubai before yesterday (unless you count seeing adverts for Dubai property shows on the tube!), its interesting to hear from people living there. Doesn't sound like the majority of them are very suprised.

Mr.Brown_4

Apparently lots of people are vacating their luxury apartments.

They call it the "sheikh and vac".

What? You expected better? The good stuff is subscription only.