Thanksgiving's big financial news was the financial straits of Dubai, that tiny Arab emirate that has built the world's tallest building on the world's whitest sand with money from banks in Europe (and the US?) and is now finding those buildings shoddily made with debt due anyway. See Dubai's debt crisis, BostonHerald.com (Nov. 28. 2009). Worries are that this is a new way of commercial and sovereign debt default, that will reinvigorate the economic recession just when most countries were thought to be pulling out (in spite of continuing growth in unemployment figures).
Apparently, US banks have less exposure than first anticipated, so US stock markets' initial tumble was followed by general recuperation. Id. But the thoroughbred racing industry was left wondering--the Sheik has been a significant investor in Kentucky's native industry for more than 2 decades. See Horse Industry Closely Watches Dubai Debt Crisis, StarOnline (Nov. 28, 2009).
Meanwhile, other banking systems are more invested in Dubai than the US, from first reports. UK banks--Barclay's, Lloyds, Bank of London, HSBC-- saw a quick $14 billion get wiped out. Dubai in Deep Water as Ripples from Debt Crisis Spread, TimesOnlineUK (Nov. 27,2009).
Maybe banks should start paying a little more attention to what they are lending to support? Dubai has built an empire on shifting sand, out of slave labor, and with no concern for the environment. It wastes water in a way that would put Las Vegas to shame. For more on all that and how the Dubai debt binge built a greedy me-first capitalism fueled by slave labor and environmental evil, see Johann Hari's Independent story, the Dark Side of Dubai(April 7 2009) and A Morally Bankrupt Dictatorship (Nov. 27, 2009).
I wouldn't want to be living on one of those artificial islands while global warming raises ocean levels and makes water even more important...
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