Dubai is on the verge of Sovereign Default and Bankruptcy (1 Viewer)

[PrinceHarry]

Someone prematurely claimed the superiority of Islamic finance over western capitalism and how they performed exceptionally well while the western banks crumble in a thread like this

Surprise Surprise Dubai is on the verge of Bankruptcy, the 2nd Sovereign Default after Iceland in this recession, and the largest svoereign bankrupcy since Argentina defaulted its loans in 2001. Dubai World who arrogantly tried to buy American ports in the eastern seaboard not so long ago, cried and begged for mercy to creditors to give the Dubai Go'vt owned company more time to pay back its debts.

Nov. 26 (Bloomberg) -- Dubai shook investor confidence across the Persian Gulf after its proposal to delay debt payments risked triggering the biggest sovereign default since Argentina in 2001.
The cost of protecting government notes from Abu Dhabi to Bahrain rose, extending the steepest increase since February as Dubai World, with $59 billion of liabilities, sought a “standstill” agreement from creditors. Its debt includes $3.52 billion of bonds due Dec. 14 from property unit Nakheel PJSC. Dubai credit-default swaps climbed 90 basis points to 530 after yesterday increasing the most since they began trading in January, CMA Datavision prices showed

Dubai Debt Delay Rattles Confidence in Gulf Borrowers (Update4) - Bloomberg.com

 

[youngminii]

what is a dubai

 

[zstar]

what is a dubai

A Place where you can enjoy milk and cookies.

 

[Nebuchanezzar]

the men who built their empire on sand...

 

[banco55]

There was always a big question mark over how they would survive long term. Like most Muslim Arab countries their human capital is negligible so basically all the brains had to be imported.

 

[Anonymous-]

dubai is 80% foreigners

 

[slively03]

lol 50% are of Indian descent

Well somebody's got do build those skyscrapers.

Oil only lasts so long

And it's back to making carpets for you.

 

[Amogh]

Well somebody's got do build those skyscrapers.

deja vu
either you or somebody else has said the same thing before

 

[slively03]

most of the engineers for the skyscrapers are curries from india and lanka contracted by English conglomerates and most of the laborers are arabs. Dubai has a massive skills shortage. If they managed not to outsource expensive engineering contracts they would be uber rich

Not anymore they don't. Dubai is finished. No point employing people when you can't get finance to build anything.

 

[slively03]

its major lol actually. Whats the deal with sovereign defaults? Like with home loan defaults, do the lenders get title to the properties that were defaulted on?

Which will undoubtedly become worthless (the bubble burst) and vacant (or possibly unfinished).

 

[S.H.O.D.A.N.]

wow, this is probably an ARAB conspiracy to get major funding from western banks and build awesome towers hotels etc and then default and then pwn the banks

Computer says noooooooo.

 

[Amogh]

wow, this is probably an ARAB conspiracy to get major funding from western banks and build awesome towers hotels etc and then default and then pwn the banks

but even after defaulting, aren't they legally obliged to still repay the debt at a later point? (i've heard 6 months later)
not so much of a win then is it...
or do they completely evade it?

 

[PrinceHarry]

The biggest losers will be British Taxpayers who have been topping up both Royal Bank of Scotland and HSBC because both of them are heavily exposed in Dubai. It is widely believed that Commonwealth Bank is also exposed too but they are not talking.

It will be a good idea to avoid mid-east based airlines as of now to avoid disappointment in case the airlines goes bankrupt.

 

[Cyrus the Great]

The biggest losers will be British Taxpayers who have been topping up both Royal Bank of Scotland and HSBC because both of them are heavily exposed in Dubai. It is widely believed that Commonwealth Bank is also exposed too but they are not talking.

It will be a good idea to avoid mid-east based airlines as of now to avoid disappointment in case the airlines goes bankrupt.

wasup you fuckng filthy pom!

 

[S.H.O.D.A.N.]

,

Yeah according to SHODAN, how it works is similar to home foreclosures in the US whereby if you default, you are forced to hand the keys over to the banks and they take title and sell it off. So if there is mass defaults like in Dubai, the Western Banks have ownership of essentially heap and heaps of properties (sovereign default) so its essentially a massive bubble thats popped and these properties are worth substantially less than the amount these banks lent the Dubaians.

Hence why the Western banks are screwed and the stock markets are jittery.

So perhaps this is an inside job.

I may be drunk, but I don't remember saying that. My knowledge of foreign and/or sovereign debt is limited.

 

[itszen]

Personally, i feel that Dubai doesn't deserve this great beauty of skyscrapers and this status of an investment wonderland because the country in general, itself has one of the worst human rights record in the world. I think all of this investment and money should go somewhere else wheres human rights are respected .

 

[jennyfromdabloc]

Personally, i feel that Dubai doesn't deserve this great beauty of skyscrapers and this status of an investment wonderland because the country in general, itself has one of the worst human rights record in the world. I think all of this investment and money should go somewhere else wheres human rights are respected .

Agreed. They are absolute cunts.

http://www.independent.co.uk/opinio...ctatorship-built-by-slave-labour-1828754.html

I hope the whole Emirate goes bankrupt.

 

[S.H.O.D.A.N.]

Agreed. They are absolute cunts.

Johann Hari: A morally bankrupt dictatorship built by slave labour - Johann Hari, Commentators - The Independent

I hope the whole Emirate goes bankrupt.

Agreed. It's amazing how the West has propped it up for so long. Amazing and hypocritical.

 

[will-anal]

What's more amazing is the number of spastic Westerners who have moved to Dubai because omg it's totally unbelievable I get paid 49035x more than I do in Australia it's AmAzInG and too good to be true.

Fuck that shit, even if you do get paid 49035x more, IT'S STILL DUBAI AND IT'S STILL IN THE MIDDLE EAST AND THE MIDDLE EAST IS FUCKED.

 

[Nebuchanezzar]

Personally, i feel that Dubai doesn't deserve this great beauty of skyscrapers and this status of an investment wonderland because the country in general, itself has one of the worst human rights record in the world. I think all of this investment and money should go somewhere else wheres human rights are respected .

There's no beauty in the built landscape of Dubai. I think most skyscraper enthusiasts would agree it has one of the most godawful skylines in the world.

Humorous, because the Arabs strived to achieve Western greatness and went for the formulaic approach. Now it's ended up looking more like an attractive communist wasteland than a desert paradise.