• If you enjoy the forum please consider supporting it by signing up for a NES Membership  The benefits pay for the membership many times over.

Stock markets around the world tank on Thanksgiving

dwarven1 said:
It's starting...
Click to expand...
Nah, it started a LOOONG time ago... [wink]

The issue is that we are one step closer to the "masses" recognizing "it" for what "it" really is...

There's been a lot of denial going on for a long time and that denial - fueled by the paternal government - has reached a fever pitch in recent years...

The Piper will be paid...
 
Dubai has been spending like drunken sailors for years. This may have very little to do with general economic conditions and more to do with some ego maniacs vision of his homeland becoming the crowned jewel of the arabian peninsula.

Although I wont deny that it comes at a bad time and that it won't have a negative impact on the rest of the world.
 
One has to ask themselves why a nation with a $39 Billion GDP was allowed to borrow 3 times that amount. [rolleyes]

For those not up on finance, in comparison the US debt is only 70% GDP.

http://www.calculatedriskblog.com/2...mpaign=Feed:+CalculatedRisk+(Calculated+Risk)
A little more Dubai news ...

From Bloomberg: Dubai Debt May Be Higher Than $80 Billion, UBS Analysts Say

Dubai... may owe more than the $80 billion to $90 billion in liabilities assumed by investors, UBS AG analysts said in a note.

“Perhaps Dubai’s debt includes sizeable off-balance sheet liabilities that imply a total debt burden well above the $80 billion to $90 billion markets have estimated so far,” real estate analyst Saud Masud wrote in a note yesterday. “This could imply that the debt issued by Dubai in recent weeks is insufficient to meet upcoming redemptions.”
Click to expand...
And more:

RBS Led Dubai World Lenders, HSBC May Have Most at Stake in UAE
RBS, the largest U.K. government-controlled bank, arranged $2.3 billion, or 17 percent, of Dubai World loans since January 2007, JPMorgan said in a report today .... HSBC, Europe’s biggest bank, has the “largest absolute exposure” in the U.A.E. with $17 billion of loans in 2008, JPMorgan said ...
Click to expand...
Click to expand...

ETA:
some links
(old data) http://en.wikipedia.org/wiki/List_of_countries_by_public_debt
http://en.wikipedia.org/wiki/United_States_public_debt
 
Last edited:
http://www.calculatedriskblog.com/2...mpaign=Feed:+CalculatedRisk+(Calculated+Risk)

James Pressler at Northern Trust provides an overview of the Dubai situation: Dubai’s Latest Mega-project – A Massive Default? (pdf) A few excerpts:
The complexities of the UAE’s governmental structure make the situation difficult to grasp at first glance, but the problem can be captured by a few basic points. First, Dubai is the second-largest emirate in the UAE next to Abu Dhabi, but Abu Dhabi is also the power of the national government and has been challenged by Dubai’s meteoric rise. Next, the UAE has a sovereign wealth fund estimated at one half-trillion dollars in case of emergency, so money is clearly available at the national level to bail out Dubai if that route is chosen. Lastly, the national government wants to emerge from this situation with international markets assured that a state-run entity has the backing of the government and will be subsequently subject to reform and accountability. Taken together, these points plus an appreciation of the politicial undercurrents suggest a scenario that avoids outright default.
Click to expand...
This suggests that Abu Dhabi will bailout Dubai, but that isn't certain:
The first sign of things to come could be as early as the first week in December, when Gulf markets re-open from the Eid al-Adha holiday (Dubai World announcing its debt postponement plans just before Eid celebrations was in all likelihood not a coincidence). This will mark the first chance for officials to state positions and make confidence-building claims, with the further interest of calming international markets. Between that time and the December 14 due date for Dubai World’s next debt payment, we expect to see a concrete plan laid out for bailing out the conglomerate and some pressure taken off the credit markets. However, if no settlement can be reached, it would not surprise us if another major entity started talking about restructuring or a debt freeze before year-end – and not necessarily a company in the UAE.
Click to expand...
And from the Financial Times: Abu Dhabi expected to prop up smaller brother
[W]ith Dubai raising the possibility that one of its flagship entities may default, attention is now focusing on just how far Abu Dhabi is willing to go to bail out its smaller brother. Underlying the uncertainty, it is thought that Abu Dhabi officials were caught unaware by Dubai World’s dramatic statement ... Ultimately, though, there is consensus that Abu Dhabi will not see it fail.
excerpted with permission
Click to expand...
Should be an interesting couple of weeks.
Click to expand...
 
terraformer said:
Dubai has been spending like drunken sailors for years. This may have very little to do with general economic conditions and more to do with some ego maniacs vision of his homeland becoming the crowned jewel of the arabian peninsula.

Although I wont deny that it comes at a bad time and that it won't have a negative impact on the rest of the world.
Click to expand...

Any different from the U. S. ? Spending....printing? What backs it up?
 

Similar threads

The cause of poor accuracy was the stock? Maybe……..
Replies
7
Views
312
Taipan01
Taipan01
5 shot after Maryland high school senior skip day turns violent: 'What is the world coming to?'
Replies
7
Views
239
SpaceCritter
SpaceCritter
For those who question the strength of M2A1 vs M2A2 ammo cans, here's an interesting article on the subject.
Replies
12
Views
376
Uzi2
U
Interesting Article on the "Notching" of Firearms to Keep Track of "Kills"
Replies
8
Views
367
clampett
clampett
Smart gun will put fingerprint, facial recognition technology to work: Biofire has called it the 'first and only biometric firearm on the market'
2
Replies
42
Views
613
JuergenG
JuergenG
Back
Top Bottom