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.
Stay tuned.
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7 comments:
Maybe we could bail them out. And then the taxpayers of America would own Dubai - and the cute set of artificial islands that they're building that can be seen from space.
I would love a six month reprieve from bills. Would Dubai notice if I snuck my stack of bills underneath theirs?
Lou, someone is eyeing those islands, perhaps you can form a syndicate of private equity firms to buy the palm tree island at a fire sale price.
This should get very interesting down the road. They have a few neighbors that could buy them out.
Julie, that is a wonderful idea. You might want to write to their embassy in Washington and see how they would feel about that. I have no idea what they might ask for in return from you, but you will never know if you don't ask.
Like a Freudian slip that Black Friday for retailers not being in the red is called black. I think of Black Tuesday.
Yes Robert, I thought of that too the first time I heard it.
Everything is BIG in Dubai...BIG dreams...BIG buildings...and BIG debt. I've been there about 6 times and it is an amazing place in a over-the-top kind of way. The Aussie market has opened up higher this morning, but as the day progresses it might track down...just watching!
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