Tuesday, January 5, 2010

2nd Bout of Hubris

The Burj Dubai might serve as a monument to the Supersize Me Era.

DUBAI, Jan 4 (Reuters) - "Dubai opened the world's tallest structure in a glitzy ceremony meant to put a brave face on crushing debt woes, leading some to wonder whether the Burj Dubai is the emirate's crowning glory or its last hurrah. The $1.5-billion tower will reach 200 storeys into the sky, and although officials have not yet revealed the exact height, it will exceed the next highest structure by some 300 metres (1,000 ft). But concerns about the emirate's $100-billion debt pile, which have made Dubai's stock exchange one of the world's worst performing, overshadow both the ceremony and boasts by the builder, Emaar Properties EMAR.DU, that the Burj heralds a new dawn. 'The worry for Dubai is that the event will be remembered as a second bout of hubris,' said David Butter, regional director for Middle East and North Africa at Economist Intelligence Unit. The first bout was in November, 2008, two months after the collapse of Lehman Bros., when Dubai spent $24 million on the opening ceremony of the Atlantis hotel, an event that did more to highlight a taste for extravagance than assuage fears that the economic crisis was not being taken seriously."

"Robert Prechter's research illustrates that during major credit expansion periods, the tallest buildings "of their time" have been constructed. The Burj Dubai might be a great example of this phenomenom. Euphoria rules at the crest of the tidal wave."
Random Roving - 12/11/08

"It looks like that credit card might have run dry. This one will be one to watch"
Random Roving - 3/11/09

"Wow.....sounds like the used car business might have a surplus in Dubai!"
Random Roving - 6/16/09

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