Dubai default.

Post #317,863 by Another Scott 11/26/09 11:50:19 PM Reply	Dubai default. http://www.calculate...ubai-default.html There are more shoes waiting to fall. IOW, the world economy is still very fragile. Cheers, Scott.
Post #317,869 by folkert 11/27/09 5:45:55 PM Reply	What...? What, you mean there IS something that has an economy that lies outside the US?
Post #317,902 by jay 11/28/09 9:23:59 PM Reply	That will be ugly, but not unexpected Dubai has been running on the gifts of it's neighbors for some time. Anybody who finds it surprising that Dubai might default is an idiot. It is one of the fundamental problems of economics that there are a lot of highly functional idiots with complex economic models that are very good are predicting things when everything is going smoothly, but they don't understand how their models break when things go badly. Jay
Post #317,991 by Another Scott 11/30/09 11:52:11 PM Reply	More - It's not going to be pretty. Though some of the "experts" are trying to minimize the impact, I find it hard to believe that this is the end of the problems with over leveraged investment funds. http://www.calculate...1/more-dubai.html Dubai World, the state-owned conglomerate, was effectively abandoned to its fate by the Emirate's Government yesterday despite previous assumptions that Dubai would stand behind the company. That has raised the likelihood that lenders to Dubai World, which has liabilities of $60 billion, could lose billions of dollars. Dubai World will be restructured and some of its assets ... are likely to be sold to pay down debt. However, there is uncertainty over the robustness of creditor protection under Dubai law and lenders are understood to be concerned that they will get little or none of their money back. Analysts at RBC Capital Markets said: ÂThe bottom line is that creditors have almost no legal legs to stand on to maximise recovery values.Â More is at Bloomberg: http://www.bloomberg...XO4dShSSWes&pos=1 Cheers, Scott.

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