Saturday, November 28, 2009

The Dubai Standstill

In December ,2008 I made a post about Dubai. In March, 2009 I provided an update. Then in June of this year we talked about the parking lots. The Wall Street Journal reports this:
LONDON (MarketWatch) -- "Fears of a potential sovereign default by Dubai roiled financial markets Thursday, sinking stocks in Asia and Europe and pushing up government-bond prices as investors sought safe havens. Dubai late Wednesday said it would restructure Dubai World and announced a six-month "standstill" on repayments of the state-run wide-ranging conglomerate's debt. Analysts said Dubai's woes were a blow to sentiment, serving as a reminder that potential trouble spots remain. 'I don't see this as a massive issue but it's another warning to where the world got itself last year with loose monetary conditions [and] loose lending,' said Naeem Wahid, market strategist at Lloyds TSB. 'And, in a few cases, the problems are still out there and we could continue to see these kinds of nasty surprises' in the future."

The entire article:

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