I started this blog in June 2007 asking these questions: Are we in a massive asset bubble that will blow up in our faces ??? - ANSWERED YES ! Is western and particularly British society on the verge of social collapse??? What are the best common sense long term investment strategies to keep you rich? When will consumption/debt bubble economics end and a real savings/production economy begin ???

Sunday, 30 November 2008

Is Dubai is the world's biggest toxic timebomb ?

All questions about how this growth is being financed have been brushed aside. While the West has suffered, Dubai's extravagance has reached new levels: from its vast Terminal 3 at the international airport, which is due to be redundant when the even bigger Jabel Ali airport is built in 2015, to the $20m launch party of the Atlantis hotel two weeks ago.

But in recent weeks the cracks in Dubai's economy have become undeniable. Property prices have slumped, demand has dried up and, for the first time, the emirate is being forced to consider calling a halt to its expansion. Some analysts are claiming that Dubai could implode, weighed down under a pile of debt and, given that it has relatively small oil reserves, no obvious way of paying for it. One said: "This has been the most spectacular spending mission on Earth. But it's a mirage. If complex debt structures have brought the financial world to its knees, Dubai is the world's biggest toxic timebomb."


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