Looks like there’s gonna be trouble!
Economist: The government of Dubai requested a six-month “standstill” from creditors on paying back debt accumulated by Dubai World, causing a prompt downgrade to government-related debt from credit-rating agencies. The state-owned conglomerate is behind some of the Gulf emirate’s most ambitious ventures of recent years, including the Palm Jumeirah residential resort. Once feted by businessmen the world over, Dubai’s government and state-backed companies are reckoned to have racked up as much as $80 billion in debt. See article
I am not convinced that its all really due to Dubai — that’s just an excuse for a little overdue whackage.
David Kotok, however, has some thoughts on the issue . . .