It seems as though appearances can be deceiving. In recent years, Dubai has been thought to be one of the few cities in the world that has had a thriving economy amidst the economic global crisis. But, I guess Dubai's supposedly booming economy bubble is about to burst. If Dubai defaults on its debt than it could become an International nightmare that would escalate troubles within our present economic crisis. It is more probable than not that Obama will play the blame Bush game if Dubai's financial troubles causes havoc across the globe. BO seems to be unable to take responsibility for anything. This financial crisis is not former Pres. George W. Bush's fault. The Democrats blocked his every attempt to avert the crisis before the financial meltdown occurred. The Democrats were getting kickbacks for supporting Fannie and Freddie. The Democrats did not want to accept the reality that Fannie and Freddie would hurt the economy if nothing was done because they didn't want to give up all their lucrative side deals that they had with Fannie and Freddie employees. Bush tried to stop the crisis and is now being unjustly blamed for something that in reality, wasn't and still is not his fault. And, that irks me to no end. The Democrats due to their ineptitude and being morally bankrupt are the people who need to be blamed for this financial crisis. But, then again, I don't think that Democrats are capable of accepting responsibility for their actions, or inaction.
Here is the article on the debt crisis in Dubai, and three videos explaining exactly how the financial meltdown occurred, and how the Bush administration tried to stop this financial crisis from happening, but Democrats blockaded all of his administration's attempts to stop the housing crisis at every turn.
Nov. 27 (Bloomberg) — Dubai’s debt woes may worsen to become a “major sovereign default” that roils developing nations and cuts off capital flows to emerging markets, Bank of America Corp. said.
“One cannot rule out — as a tail risk — a case where this would escalate into a major sovereign default problem, which would then resonate across global emerging markets in the same way that Argentina did in the early 2000s or Russia in the late 1990s,” Bank of America strategists Benoit Anne and Daniel Tenengauzer wrote in a report.
A default would lead to a “sudden stop of capital flows into emerging markets” and be a “major step back” in the recovery from the global financial crisis, they wrote.
Emerging-market stocks around the world have slumped for two days on concern a debt restructuring by Dubai World, with $59 billion of liabilities, will add to the $1.72 trillion of losses and writedowns from the global credit freeze. The MSCI Emerging Markets Index fell 1.9 percent to 940.30 as of 1:55 p.m. in New York, extending this week’s decline to 2.6 percent.
Dubai, which borrowed $80 billion in a four-year construction boom to transform its economy into a tourism and financial hub, suffered the world’s steepest property slump in the recession. Home prices fell 50 percent from their 2008 peak, according to Frankfurt-based Deutsche Bank AG.
“In a best-case scenario, this will remain limited to a Dubai corporate sector problem, with either some bailout from UAE authorities or a market-friendly debt restructuring,” they wrote.
Bank of America estimates that Dubai’s debt totals $88 billion, and that its external debt equals 103 percent of gross domestic product, according to a separate report. CONTINUED