For those of you unaware, late last week Dubai surprised the financial markets when it asked creditors of Dubai World to agree to a six-month standstill on debt payments for debt totaling > $80 Billion.
In a world of bailouts totaling many tens of trillions thus far, $80 billion certainly seems like a pittance, but many believe this is a black swan event that will parallel the panicked collapse of Lehman Bros - where the contagion spread like a fast moving virus, stoking global credit market fears and paralysing the world economy...
If that is indeed the case, get ready for global economic crisis phase 2 (remember March 2009?). I suggest you keep your eye on the markets in the coming days and weeks, get conservative if you haven't already done so and prepare yourself for the worst...
Bottom line: That light at the end of the tunnel - the one our political and corporate controlled media system keep harping about - may certainly be near, but unfortunately it's not what they had anticipated - it's actually a high speed, fully ladened, out of control freight train coming right at us... Are you ready??
DUBAI, United Arab Emirates Just a year after the global downturn derailed Dubai's explosive growth, the city is now so swamped in debt that it's asking for a six-month reprieve on paying its bills —causing a drop on world markets Thursday and raising questions about Dubai's reputation as a magnet for international investment.
The fallout came swiftly and was felt globally after Wednesday statement that Dubai's main development engine, Dubai World, would ask creditors for a "standstill" on paying back its $60 billion debt until at least May. The company's real estate arm, Nakheel — whose projects include the palm-shaped island in the Gulf — shoulders the bulk of money due to banks, investment houses and outside development contractors.
In total, the state-backed networks nicknamed Dubai Inc. are $80 billion in the red and the emirate needed a bailout earlier this year from its oil-rich neighbor Abu Dhabi, the capital of the United Arab Emirates.