Happy Black Friday! Took this quote off a forex forum as follows:
By Daniel at 27 November, 2009, 1:48 am
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Dubai has been in problems since the start of Financial Crisis and in fact much earlier than that. I’ve spent a long time in Dubai (grew up there) and we’ve seen the rags to riches sort of journey but then in 2005 I decided to say good bye and move to Australia as things started to get out of control over there.
House rents were increased like 4 or 5 times in just 3 years and same with the other daily life stuff such as grocery and etc. People booked even up to 10 times profits on the artificially inflated house prices, and now the same house are back to their 2002 prices and still there are no buyers in market.
These were the clear signs of things entering into over-heated market and a correction was must to come. But honestly speaking, I never thought that the correction would lead things to this situation where we are now. Luckily, Abu Dhabi is still pumping its money into Dubai but all this help comes with a price tag too.
Its quite funny though how exactly after 13 months of Iceland’s banking collapse we’ve now Dubai caught up in the same kind of scenerio (sounds like Martin Armstrong’s pi cycle theory ). Both had high debts, both had an uncontrolled banking industry, both had a high inflation problem and both had a very high rate of growth in an extremely short of period of time.
Next few days are quite important to watch out actually as Dubai owns a lot in not only London Stock Exchange but also a joint venture between Dubai and Qatar owns a large chunk in NASDAQ group which itself is the parent company for several exchanges globally from NASDAQ in New York to Scandinavian markets. And then there is Abu Dhabi who already owns many things on EURO Stoxx ….
Interesting times IMO
- Lawnmowerman
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