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uaebadoo wrote:http://news.yahoo.com/s/nm/20091214/bs_nm/us_dubai_debt_repayment

UAE = One Nation

No surprises here, I am waiting for all the DB's to start.

Yes Sage, One Nation, and they should, however lets not forget that it is the proof that Dubai World cannot repay its debt, it s not bashing it s a fact, they just postponed the problem.

Great goin Big Daddy (Abu Dhabi)..all the best Dubai..hurrrrray UAE!

Nice point sage, one nation. What's the difference between this and Washington bailing out California/NY (which essentially what it was)? Oh yeah, NY & Cali made the nation's money. Yet others have a point too as to what will the future hold. Probably more bailing. 10B isn't that much...really.

Dubbbaibby wanted to be a world player, but was it ready? This is the question. I think so and I also think it's far too late now for anyone to let it fail. It's been too much fun on the world-stage. As much as the Fish 'n Chippers would love to see it fail or at least make it news-worthy, it won't. It's been too much of a good story and it has (for the time-being) enough support (oil) to float...

smokedawg wrote:Nice point sage, one nation. What's the difference between this and Washington bailing out California/NY (which essentially what it was)? Oh yeah, NY & Cali made the nation's money. Yet others have a point too as to what will the future hold. Probably more bailing. 10B isn't that much...really.

Really. News to me and I "keep up" with the news. Care to enlighten us?

Although many things contributed, the main source of the American-triggered Global Economic Crisis was the fall of the housing market which lent millions to new home owners (see Countrywide and it's merger with BofA). Once property value tanked in California (which was growing too far too fast) circa summer '07, recession hit the US, folks couldn't make the mortgage. It spread like wild fire and chips began to fall. This is a very, very simplified version but the point is Washington had little to do with the source of the problem but came to the rescue much as AD did.

smokedawg wrote:Although many things contributed, the main source of the American-triggered Global Economic Crisis was the fall of the housing market which lent millions to new home owners (see Countrywide and it's merger with BofA). Once property value tanked in California (which was growing too far too fast) circa summer '07, recession hit the US, folks couldn't make the mortgage. It spread like wild fire and chips began to fall. This is a very, very simplified version but the point is Washington had little to do with the source of the problem but came to the rescue much as AD did.

Yes indeed, the "Sub-Prime Crisis" it certainly was the start of something big.

sage & onion wrote:

smokedawg wrote:Although many things contributed, the main source of the American-triggered Global Economic Crisis was the fall of the housing market which lent millions to new home owners (see Countrywide and it's merger with BofA). Once property value tanked in California (which was growing too far too fast) circa summer '07, recession hit the US, folks couldn't make the mortgage. It spread like wild fire and chips began to fall. This is a very, very simplified version but the point is Washington had little to do with the source of the problem but came to the rescue much as AD did.

Yes indeed, the "Sub-Prime Crisis" it certainly was the start of something big.

but how in the world did you get your sub-primate mortage Sage?

You kinda only got half the story - the problem was that banks were repacking high risk mortgages as AAA rated. When it came to pay up the house of cards fell.

XPT wrote:

sage & onion wrote:

smokedawg wrote:Although many things contributed, the main source of the American-triggered Global Economic Crisis was the fall of the housing market which lent millions to new home owners (see Countrywide and it's merger with BofA). Once property value tanked in California (which was growing too far too fast) circa summer '07, recession hit the US, folks couldn't make the mortgage. It spread like wild fire and chips began to fall. This is a very, very simplified version but the point is Washington had little to do with the source of the problem but came to the rescue much as AD did.

Yes indeed, the "Sub-Prime Crisis" it certainly was the start of something big.

but how in the world did you get your sub-primate mortage Sage?

You have absolutely no idea what you are talking about.

smokedawg wrote:Although many things contributed, the main source of the American-triggered Global Economic Crisis was the fall of the housing market which lent millions to new home owners (see Countrywide and it's merger with BofA). Once property value tanked in California (which was growing too far too fast) circa summer '07, recession hit the US, folks couldn't make the mortgage. It spread like wild fire and chips began to fall. This is a very, very simplified version but the point is Washington had little to do with the source of the problem but came to the rescue much as AD did.

Ummm so what's ur take on Freedie Mae and Fannie Mac then?

Banks never wanted to lend money to these people, Democrat politicians and activist groups like ACCORN used political pressure and threatened lawsuits

Now I could be wrong....and you may subsequently bring up CDO's and CDS and other asset back securities that were not collateralized. But since we're talking bout sub prime lets stick to Freddie and Fannie

After consideration I do not see Dubai failing. There is more millionares in the world everyday and lots of them like to live in a nice new city and have a good marina to park their yacht. Also its a nice warm climate. Yes its a setback for Dubai but where else would you want to see a new city that embraces modern civilization and has great muslim influence? The first investors had vision and were not stupid. Some business will take a beating but in the long run I see Dubai being even more of a success. Of course there is always those that want to take their money and run. I believe the smart investor stays for the long haul. The global recession has hurt everyone. It just took a little longer to hit Dubai. My opinion only of course.

canuckbid wrote:After consideration I do not see Dubai failing. There is more millionares in the world everyday and lots of them like to live in a nice new city and have a good marina to park their yacht. Also its a nice warm climate. Yes its a setback for Dubai but where else would you want to see a new city that embraces modern civilization and has great muslim influence? The first investors had vision and were not stupid. Some business will take a beating but in the long run I see Dubai being even more of a success. Of course there is always those that want to take their money and run. I believe the smart investor stays for the long haul. The global recession has hurt everyone. It just took a little longer to hit Dubai. My opinion only of course.

And who said the basic business model was flawed? But every plan has limitations....The first investors had vision no doubt, but the scale of activity......that's the where the question marks begin to appear.Mind you this lavish scale of construction is only something that figured in maybe the past decade not before that.

Look at it this way, what's Dubai's GDP? at best $60billion? Debt...at most conservative $80 billion?

Now here's another perspective....do you think a few millionaires with yachts on the marina are gonna sustain the economy here? I mean we're talking bout $60 bill remember? So break down the economy into various sectors.....look at the debt...analyze public sentiment, while ur at it try and figure out the liquidity situation as well. Now those are the various factors that define the success or failure of an economy....so why was ur conclusion positive in the long run. What changes do you forsee between now and the "long run"?
The question simply is this, in the past the huge economic growth was funded to what extent by cheap liquidity and infrastructural developments? Now something else is required, the next big idea, cuz the gov. can't keep constructing forever....so what will that next big idea be?
Outsourcing, manufacturing or is the economy mature enough to take over from here on and sustain itself? I really don't know. What do you have to say bout this?

canuckbid wrote: Also its a nice warm climate.

i dont see Dubai failing as well, as there is nothing as good as it within a 5 hours flight...

But please stop this warm, sunny climate bs


Dubai has great weather for 4 months out of 12. The rest 8 months have hot days in which you cant walk more than 5 minutes in daytime without sweating


Not to mention for 4 months at a stretch the temperature never goes below 30C

Saying Dubai has good weather because of its weather in Dec is like saying Edmonton has a nice warm climate simply because of its weather in June and July..

Why could not Dubai become a banking and technology hub? They have a modern city. The rest of the world has crumbling cities, dams, and infrastructure. The world is going through a population explosion at the moment. The people have to live somewhere. I don't really see where bashing Dubai does anyone any good. Sure they have big debt. So does most of the rest of the world. I like my country but that does not mean its the only good place in the world to live. Imagine living in the UK where you have to pay to go fishing on a lake because its so crowded. Or a big city in China where the pollution is so bad people die from the air. Remember the olympics there? They bused the athelics into the cities for the events and then they left afterwards to the country. Dubai still has lots going for it.