Abu Dhabi isn’t “giving” ten cents to anyone, let alone $10 billion.
By Daniel at 14 December, 2009, 1:16 pm
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They are proposing to LOAN money with a lot of strings attached. Dubai World will undergo a partial switch of creditors, that’s all. They still won’t be able to pay their debts.
The journalist-chix managed to leave out the most important phrase in the Sheik’s statement: What Sheikh al Maktoum actually said was, We will make the funds available “conditioned on the company being successful in negotiating a standstill as previously announced.”
http://www.dubaicityguide.com/site/news/news-details.asp?newsid=27215
Big problem. The foreign creditors all flew to Dubai saying, “Hell, no. There’s not going to be any standstill.” Nakheel wants all the foreign banks to forego six months of interest, without any recourse on their money, while Dubai World takes care of its Islamic Bank buddies.
The foreign banks know things are not going to be better in six months. The money will be gone, and the artificial islands will still be barren and the giant buildings will still be empty. Those bankers are fools; all they had to do was fly into Dubai and see that everything going on there was a facade, a fake western town to shoot movies in. No one lives in those skyscrapers, and the investors have fled, leaving behind their leased luxury cars covered with dust.
Dubai is another Dick Fuld Lehman Liar: “We remain well-capitalized” right up to the day they explode. And the stock markets go up again, on another fake “good news” event.
Pretty much all market “news” is disinformation and propaganda. The point is to convince the investor masses that it’s really safe to go back into the water. Then the sharks will sell you the shares they bought with Fed credit, and leave you standing there with the empty bag when the Dow returns to 8000. And 7000.
- Woodsmoke
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