Dubai debt plea sends fear around world

[Lucidor]

we should lock a bunch of Euros up in a room, in Guantanamo perhaps, and make them listen to American patriotic songs. I bet you by hour 4 they melt or disappear into spheres of radiant light.

Sung by men with 3 gallon hats and shirts with the Stars and stripes? You bet!

[Caliga]

Sung by men with 3 gallon hats and shirts with the Stars and stripes? You bet!

I've got a cowboy hat and a Bass Pro Shops t-shirt... does that count?

[Lucidor]

Sung by men with 3 gallon hats and shirts with the Stars and stripes? You bet!

I've got a cowboy hat and a Bass Pro Shops t-shirt... does that count?

Ofcourse it does. Jaron needs you for his secret room somewhere, I've heard.

[Martim Silva]

It would be interesting to know who's sitting on that 60 billion of debt.

Dubais' debt was estimated at between 80-90 billion, but there is a lot that was off-balance, so the final tally is probably rather higher.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aXGrvyOI6IWs&pos=3

As for who is sitting on it, UK banks loaned heavily to the UAE. About 45% of Dubais' debt belongs to them. Especially Royal Bank of Scotland.

[Malthus]

It would be interesting to know who's sitting on that 60 billion of debt.

Dubais' debt was estimated at between 80-90 billion, but there is a lot that was off-balance, so the final tally is probably rather higher.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aXGrvyOI6IWs&pos=3

As for who is sitting on it, UK banks loaned heavily to the UAE. About 45% of Dubais' debt belongs to them. Especially Royal Bank of Scotland.

Heh, must be following the Darien investment precedent. 

[Josquius]

It would be interesting to know who's sitting on that 60 billion of debt.

Dubais' debt was estimated at between 80-90 billion, but there is a lot that was off-balance, so the final tally is probably rather higher.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aXGrvyOI6IWs&pos=3

As for who is sitting on it, UK banks loaned heavily to the UAE. About 45% of Dubais' debt belongs to them. Especially Royal Bank of Scotland.

Bugger.
Thats all we need.
I guess we could just declare them terrorists and go get our money back but...that takes effort.

[HVC]

It would be interesting to know who's sitting on that 60 billion of debt.

Dubais' debt was estimated at between 80-90 billion, but there is a lot that was off-balance, so the final tally is probably rather higher.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aXGrvyOI6IWs&pos=3

As for who is sitting on it, UK banks loaned heavily to the UAE. About 45% of Dubais' debt belongs to them. Especially Royal Bank of Scotland.

Bugger.
Thats all we need.
I guess we could just declare them terrorists and go get our money back but...that takes effort.

What money? They have none, that's why they're in shit to begin with

[Josquius]

Bugger.
Thats all we need.
I guess we could just declare them terrorists and go get our money back but...that takes effort.
]What money? They have none, that's why they're in shit to begin with

Nor did Iceland but we managed

[Martim Silva]

Nor did Iceland but we managed

Well, actually what the UK government did was to loan Iceland the billions of pounds with which the country could repay the depositors of the Icesave online bank (the Dutch did the same), but it seems that the Icelanders have other ideas as to what to do with the money...

http://www.bloomberg.com/apps/news?pid=20601085&sid=a4Mr3uWpglY8

Iceland's agreement to reimburse British and Dutch depositors in Icesave Internet accounts isn't legally binding, Prime Minister Johanna Sigurdardottir said in a letter to her U.K. counterpart Gordon Brown.

Iceland agreed on Oct. 19 to borrow 2.35 billion pounds ($3.92 billion) from the U.K. and 1.2 billion euros ($1.81 billion) from the Netherlands to cover depositors in the online bank set up by failed lender Landsbanki Island hf.

What has Abu Dhabi decided not to loan them any money anymore?

English please.

Dubai belongs the the United Arab Emirates. Abu Dhabi is effectively the financial powerhouse of the UAE, and it works as a sort of central bank for the others. Earlier this year, for example, it lent Dubai another 10 billion.

Even as late as November 13, Dubai said its debt was guaranteed by Abu Dhabi, so this plea from them is being interpreted as a sign that Abu Dhabi also has its problems, and by extension possibly all the Persian Gulf nations (which is why S&P and Moody's cut their ratings for the entire region that very same day and the cost of CDS for Qatar, Bahrain, Oman and even Saudi Arabia instantly skyrocketed).

To be honest, Abu Dhabi seems to have been just as surprised as anyone else by the events, but the fact remains that there are a lot of problems in a region that was hitherto percieved as of low risk for lenders. One of the consequences is that these last two days the local companies have had huge problems selling their bonds (called Sukuk).

[The Brain]

What Would Chavez Do?

[Ed Anger]

What Would Chavez Do?

Try to ban golf courses.

[Martim Silva]

What Would Chavez Do?

That day?

He reinforced his alliance with Iran.

http://news.ca.msn.com/world/cp-article.aspx?cp-documentid=22723781

Iranian leader Mahmoud Ahmadinejad sought to expand Tehran's influence in Latin America and deepen his alliance with Venezuela's Hugo Chavez on Wednesday in a visit that gave him a platform to defend his country's nuclear program.

Both leaders roundly denounced U.S. "imperialism," and Chavez also called Israel "a murderous arm of the Yankee empire."

But Dubai is really a western problem (it is the showcase of the UAE) and thus has little importance on Venezuelas' strategy.

[DGuller]

You mean borrowing money and using slave labour to build a giant holiday theme park for the ultra-wealthy in the middle of a desert in the middle east was a bad idea? 

Actually, evidence would seem that it isn't.  Las Vegas is still doing alright.

Las Vegas is pretty cheap. 20 dollar rooms, 3 dollar buffets, etc. Plus it's close enough to LA for weekend trips.

Yes, it's completely depressed right now.  It also had some utterly brainless over-expansion going on that blew up in everyone's face, and no one knows yet how they're going to get water decades from now.

[The Minsky Moment]

and no one knows yet how they're going to get water decades from now.

Hydrogen and oxygen sequestration.

[Martinus]

and no one knows yet how they're going to get water decades from now.

Hydrogen and oxygen sequestration.