Keep an eye on Dubai today

[marmar]

Dubai Debt Delay Rattles Confidence in Gulf Borrowers (Update3)
By Laura Cochrane and Tal Barak Harif


Nov. 26 (Bloomberg) -- Dubai shook investor confidence across the Persian Gulf after its proposal to delay debt payments risked triggering the biggest sovereign default since Argentina in 2001.

The cost of protecting government notes from Abu Dhabi to Bahrain rose, extending the steepest increase since February as Dubai World, with $59 billion of liabilities, sought a “standstill” agreement from creditors. Its debt includes $3.52 billion of bonds due Dec. 14 from property unit Nakheel PJSC. Dubai credit-default swaps climbed 90 basis points to 530 after yesterday increasing the most since they began trading in January, CMA Datavision prices showed.

“There is nothing investors dislike more than this kind of event,” said Norval Loftus, the head of convertible bonds and Islamic debt at Matrix Group Ltd. in London, which manages $2.5 billion of assets including Dubai credits. “The worst-case scenario will of course be involuntary restructuring on the Nakheel security that brings into question the entire nature of the sovereign support for various borrowers in the region.”

Dubai World’s assets range from stakes in Las Vegas casino company MGM Mirage to London-traded bank Standard Chartered Plc and luxury retailer Barneys New York through asset-management firm Istithmar PJSC. The Dubai government’s attempt to reschedule debt triggered declines in stocks worldwide that had been rebounding from the worst financial crisis since the Great Depression.

Worldwide Slump

The MSCI Emerging Markets Index of stocks headed for the biggest decline in four weeks, falling 2 percent, led by Russia and China. Europe’s Dow Jones Stoxx 600 Index lost 2.5 percent, the biggest decline since July 2, at 2:46 p.m. in London. South Africa’s rand and the Turkish lira weakened 2.1 percent against the dollar. Hungary’s forint lost 1.7 percent per euro. Credit- default swaps on Russia increased to 205 basis points from 192. ..........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aRsjlClzl500

[onehandle]

1. Let them sink. nt

[PDJane]

2. If they sink,

The US will, too. Not, maybe, such a good plan.

[anonymous171]

9. I don't have any money in Dubai. Why should I care if a bunch of parasites get fucked over?

[PDJane]

11. because it's not the parasites

who get fucked over. It's the rest of us peasants, because we always bear the brunt.

[The Stranger]

18. Hint: calling another people "parasites" (i.e., "bloodsuckers") should be a huge clue . . .

. . . when bigotry is calling the shots.

[TheWatcher]

28. Then what do you suggest be done? Continue the Criminal Shell Game?

Although your point is understood and well taken, at what point do the American People understand the Pozi Economic Shell Game is UNSUSTAINABLE and it HAS TO END at some point.

That it is inevitable.

Whether it be ours or some future generations cross to bear, it IS going to come to bear at some point.

It cannot be put off forever.

[SpiralHawk]

29. That, of course, is the classique Republicon-style strategery:

screw the proles, as usual.

[AllentownJake]

15. They import slave labor

to essentially build pyramids for the world's wealthy elite. Golf courses in the Desert, Man Made Private Islands shaped like continents, high rises in the desert.

Their human rights abuses are worse than china and their king is a ruthless despot.

Let that system die.

[The Stranger]

17. Those are some pretty sweeping statements.

Especially the human rights abuses.

Got the links?

[AllentownJake]

19. Is Human Rights Watch a reputable organization for you

http://www.hrw.org/middle-eastn-africa/united-arab-emirates

[superduperfarleft]

21. Here's one.

http://www.independent.co.uk/opinion/commentators/johann-hari/the-dark-side-of-dubai-1664368.html

I actually pulled this off of DU years ago.

[The Stranger]

16. Some people just don't like Arabs and want them to fail not matter what.

:shrug:

[AllentownJake]

20. Human Rights Watch on the UAE

http://www.hrw.org/middle-eastn-africa/united-arab-emirates

The Island of Happiness is particularly a nice show of a free country.

[arcadian]

3. There isn't enough money on the planet to pay for all the toxic debts.

[Bluebear]

5. Let's end this game of Monopoly and just start over.

You're absolutely right, this is beyond financial repair.

[tridim]

10. Who gets to make the rules if/when we start over?

I know who will TRY to make the rules.

What a clusterfuck. This is really entering uncharted waters in world history. :scared:

[DCKit]

8. That money didn't simply evaporate. It's somewhere.

We just have to claw some of it back in the form of taxes - on the correct corporations and individuals, of course.

[northernlights]

12. you're joking, right? nt

[AllentownJake]

23. In Dubai's case the money went to building man-made islands

to sell to the wealthy elite of America, Europe, and Asia. They've centered their entire economy around becoming a luxurious paradise where the wealthy of the world can come to play while neglecting their own country men and importing slave labor from far east Islamic countries.

[FarCenter]

4. European indexes were down more than 3% today.

They will have another chance to be open and down some more in the early am before the US stock markets open Friday.

Watch Asian markets this evening.

Depending on who is holding what in terms of credit default swaps on Dubai debt, this could get ugly in the City of London casino.

[Warpy]

6. I read a year ago they had the highest per capita debt rate in the world

I also read of an epidemic of partially paid for luxury cars being found abandoned at their airport as people fled rapidly deteriorating conditions.

Anybody who didn't see this coming and prepare for it is blind and should be removed from any position of power.

That probably means most financiers across the globe.

This will be ugly. I just wonder who and what it will take down.

[tjwash]

7. Thank you Ronnie Raygun

For vetoing the transparency in investment bill back in 82, that would have made all investment in U.S. corporations by foreign countries public knowledge.

I think the only ME country now, that has more money invested in Wall Street that the UAE is Kuwait.

[alfredo]

13. I guess Halliburton is rethinking its move to Dubai.

[AllentownJake]

14. I guess builidng Islands shaped like the continents of the world

and importing slave labor and sex slaves wasn't the best strategy for long term economic growth.

[lonestarnot]

25. Snort

:spray: :D

[AllentownJake]

22. K&R

How is it you get half the heat I do for posting similar things?

[OnceUponTimeOnTheNet]

24. Kick and Rec. nt

[Major Hogwash]

26. So does this mean Dubai won't be participating in Black Friday shopping frenzy?

Dude, your credit card was just rejected, man!

[DainBramaged]

30. Good one..........

:fistbump:

[juno jones]

27. K&R! n/t

[RagAss]

31. The "fisting" has begun !