The Second Leg down?

Message 1139 of 6038

While America was gobbling at the dinner table or watching football, the rest of the world may have stumbled into another rapid downturn. The financial crisis seems not to be over yet:

Dubai World Default

World markets are off 2.5 -> 3.2%:

Dubai default fears spook investors

Perhaps "Black Friday" will mean something different this year?

Will Obama push for real relief for the economy or continue his Herbert Hoover lite policies?

Will Republicans continue to demand that government do nothing?

posted by SchoolBoy

Is this the beginning of the "corporate foreclosures" that we've been warned of?

posted by torry49
over 2 years ago

No, this is a sovereign debt issue, a government entity going bankrupt. It also seems to be a test of 'Islamic Finance' should it go to court.

The government of Dubai said it would not stand behind it's wholly owned subsidiary Dubai World:

view link

The chatter over the weekend was that if Dubai can get away with letting Dubai World go under, then other countries will start letting their private firms (i.e. banks, etc) go under. And governments themselves might start defaulting on their debt.

So, do you want Dubai to 'get away' with letting Dubai World go under?

posted by SchoolBoy
over 2 years ago

Dubai has been spending money like a drunk sailor, and not even a war or a missile defense system that doresn't work to show for it.

posted by LifeLoveLaughter
over 2 years ago

They have the only indoor ski slope on the Persian Gulf! They have the world's largest building! They have the world's most uniquely designed waterfront! And if they default, they may get it for free!

That free part is because of the Islamic Finance laws that may just leave bondholders with nothing.

posted by SchoolBoy
over 2 years ago

Gee, I'm glad that we didn't let them operate our ports!

posted by torry49
over 2 years ago