Dubai, Gloom-town
Reuters: Boom turns to gloom as crisis hits Dubai
The seaside emirate of Dubai shifted into crisis mode this week as its breakneck building boom stalled, its lending bonanza evaporated and the government pondered wider steps to rescue banks.
. . . investors fear that individuals and corporations alike will have trouble paying back Dubai’s non-bank foreign currency debt estimated at just under $70 billion. Shares in the region have lost around $1 trillion since the beginning of the year as investors fled.
As I’ve said, this is the next big bubble waiting in line to burst:
PS: Oil now at $50.
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