It seems that everything is back to normal. Not in Dubai and Emirates, of course. It is going to be a little crisis over there, but I am pretty sure they will fix it in few months.
Stocks Rise Around World on Dubai, China; Dollar, Yen Decline http://www.bloomberg.com/apps/news?pid=20601087&sid=advi2uQ9sKv0&pos=1 Peace and best wishes. Xi On 26 nov, 20:44, xi <[email protected]> wrote: > My comment: Many articles today explain what has happened and how > markets, rating agencies, debtors might react. I just post one at the > very bottom of my comment (3). > > In my opinion, gulf states will not permit Dubai to reach default. In > principle, for Dubai and for the world this will look like an > accident. However it going to have consequences although people will > not realize that those conseqences come from this delay. Somehow what > the butterfly does in the theory of chaos (a butterfly flies in Bejing > and it produces a storm in New York, or viceversa). > > For Dubai, for Abu Dhabi and for the gulf it means that current oil > price cannot sustain current expenditures. Saudia and others will > realise that this world is about cooperation and mutual benefits, in > particular if we share same region. They either rise oil price or they > cut expenditures. Sovereign funds are not an exception any more. > > For other sovereign funds across the globe the time when they were > considered inmune to crisis is gone. > > What about the West? Today everybody in the West speaks loud and look > proud. Again, this world is about cooperation. > > This is not the first trouble that this crisis produced. Iceland, > Latvia came before. And it is not going to be the biggest problem of > this crisis. Higher towers are going to fall. > > An interesting article I read relates Dubai delay with something that > happened in Europe in 1931. "Time to Reread the History of Austria's > Creditanstalt in 1931..." In Europe, the Creditanstalt's bankruptcy > and what followed was what turned the recession into the European > Great Depression... (1) More about this story in wikipedia. (2) > > What we have to remember is that it attacked Germany in particular, > plainly because its debt was higher. It was the weaker economy at that > time. > > The global sentiment today is fear. Fear about Dubai? The gulf? > sovereign funds? Not really. Fear on everything. Talking about > investments, which risks are calculated and which risks are > miscalculated? The answer today is who knows. > > That fear might turn calm within few days, or it might spread along > next months and produce severe consequences on weaker economies. > > Peace and best wishes. > > Xi > > (1) Time to Reread the History of Austria's Creditanstalt in > 1931...http://delong.typepad.com/sdj/2009/11/time-to-reread-the-history-of-a... > > (2) Creditanstalthttp://en.wikipedia.org/wiki/Creditanstalt > > (3) Stocks Tumble, Bonds Rally on Dubai; Credit-Default Swaps > Soarhttp://www.bloomberg.com/apps/news?pid=20601087&sid=abuSEhKNZBBg&pos=1 -- You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/world-thread?hl=en.
