Friday, November 27, 2009
Dubai's Dubai World Says Wait Six Months
Today is black Friday in America, and everyone knows what that means. Well, today is also Black Friday in Dubai and the world doesn't know what that means yet. Dubai's investment company Dubai World has asked its creditors, big banks around the world, if it can suspend paying on its debt for six months because it is out of cash. How much are the banks on the hook for? The people that know say $59 billion, with a "B". So, Europe and the United States now have to figure out what is the downside if Dubai World should default. When you owe $59 billion, believe me, the bankers will work with you. One small caveat, Dubai doesn't have any oil. This should be interesting to watch.