Its a shame our leaders can't understand the basic rules of fair play and common business sense like these Arabs can. We've just had too many idiots in positions of power lately (Greenspan, Bush, Frank, Dodd, Gramm, etc).

Gen. If Fannie is Phoney then the red headed cousin is Fraudie.

No, Fannie = Fraudie.

“Lenders should bear part of the responsibility.”

Can we just remove the "should" from the above?

Spell check: "Govermment" should be Government.

How about some fancy ******ned Financial Engineering from American Banks: How about They engineer a nice legal way for Them to EITHER - take Full Responsibility for Their OWN Losses or choke and Die on Their Own Toxic ****?

Printing the Dollar into oblivion & proclaiming garbage as money good isn't fooling the Arabs or Anyone Else with two neurons to rub together: look at Oil, Gold; and the Dixie/S&P Correlation...

We are Being Starved for Currency even as the Value of It is being Desttoyed by Our Own Complicit Corrupt Gov't & the ruinous self serving/self preserving FED Banking Cartel.

What will it take to FORCE the US Gov't to Dissolve These Criminal Enterprises and Force the Zombie Banks to Accept the Full Legal & Economic Penalties Demanded by discovery of the Fraud & Malfeasance so clearly exposed?

the M/E oligarchs aren't very persuasive to their elected/placed political lackey's....over here, OUR oligarchs have the BEST congress money could buy....They'll catch on and duplicate our disaster eventually.

The only thing they're missing over there is a (formerly) strong middle class to dump all of that **** on while their sheeple graze and watch the NBA finals

They must not have some brilliant Goldman Sachs alumni in key government positions yet.

I really like the term "Too Big To Save".

Quote:

Even if the government of Dubai were to feel morally inclined to make good the losses of its creditors (a strange and unlikely state of mind in any rational economic being, admittedly), it probably does not have the financial means to bail them out. The Dubai sovereign is likely to be in such bad shape that Dubai World is simply to big to save.
...
The issue will come to a head no later than December 14, 2009 when a 14.7 bn UAE dirham ($3.52 bn Islamic bond or sukuk) matures and comes up for payment. To all intents and purposes this sukuk, although formally asset-backed, is only partially secured debt. Like many Islamic financial products that obey the letter but not the spirit of Islamic finance, it has been engineered to mimic the economic (contingent pay-off) features of a conventional debt instrument while maintaining the formal trappings of Sharia-compliance (partial ownership in a debt and in an asset). Capital protection is achieved through a legally binding commitment to repurchase the asset by the issuer of the debt. Over the life of the debt, the issuer pays a rent to the holder. This rent can benchmarked to a market interest rate, like Libor, or be at a fixed interest rate.

The Nakheel sukuk has a fixed interest rate of 6.345 percent per annum. It is secured against assets constituting two plots of land Nakheel is developing in Dubai. When the sukuk was issued in 2006, that land was valued at $4.22 bn. With property prices down by 50 percent or more, the value of the assets backing the sukuk could be anything between nothing and $ 2 bn. I am reminded of a tv ad about property investment that appeared on US television when I last lived in the US in the early 1990s. A couple is driving around in an arid, God-forsaken piece of South-West USA desert, looking for the all-singing, all-dancing lake-front development they had bought into. In the end the exasperated wife turns to the husband and barks: “I wonder what cactus goes for on the open market?”

http://blogs.ft.com/maverecon/2009/11/th....

Leave it to Dr. Ben Mugabe Bernanke to make sure cacti has a market value.

One thing our PTBs have managed to accomplish, is to dumb-down the word "wise" to mean "not stupid."

Quote:

Dubai’s government said it hasn’t guaranteed the debt of Dubai World, the state-controlled holding company struggling with $59 billion in liabilities, and that creditors must help it restructure.

This news must have been censored in China. Hang Seng was up massively (up to 775 points earlier) on the rumors that the very exact opposite had happened.

OT:

Article on How Summers Mismanaged Harvard's Finances

http://www.boston.com/news/local/massach....

Karl, I'm afraid you're being naive here. The UAE are not supporting Dubai because they have something the rest of the world MUST HAVE TO FUNCTION. OIL.

They have the unique ability to stick it to the Big Banks. Give Goldman Sachs the

Your bail out dollars at work:

"The US public will be “outraged” by Citibank’s $8 billion loan to Dubai just six weeks after the bank was bailed out, US House of Representatives domestic policy subcommittee chair-man has said."

http://www.washingtonsblog.com/2009/11/w....

Regardless of what the UAE is doing here they still have one main thing wrong. They are saying the problem is a lack of liquidity where the problem really is insolvency. You can't make real estate go back up 100% (reverse a 50% decline) by adding liquidity (lending more.)

Lemonaid, Dubai's oil is a pittance--6% of their revenue. Dubai was built (on credit) as a tourist destination and playground for the rich.

The Sheik has just done the logical thing. There's no reason to put himself on the line for a bunch of Emirati bankers. It's a monarchy.

How much oil does the U.A.E. have?

(answer: 6th largest reserves)

Below per Elaine Supkis today re no government guarantee. Leverage just accelerated the inevitable.

“Dubai’s sole claim to exist as a mega-housing entity is due to it being anti-Wahhabist. That is, Muslims can cross over to Dubai to have sex, drink and gamble. It looks like Las Vegas because it is a Muslim Las Vegas. For all the Muslims in the more strict nations to go bankrupt, too, or to pay a stiff price to keep this fun city alive, is extremely ironic and very, very explosive. All these vast towers are sitting ducks waiting for Muslim radicals to destroy them all. And they will. I would bank on that happening. Big time”.

http://emsnews.wordpress.com/2009/11/30/....

The only logical reason I could ever figure out for Paulson moving GSE debt onto the US gov't balance sheet was the ongoing need to borrow more money to float the entire government. Not that that was a good thing to do. He should have pulled a Dubai, but he was too damned stupid. Kudos to Dubai for explaining the difference between the gov't of Dubai & Dubai World, Inc. Too bad we didn't choose to distinguish between "full faith & credit" vs "NOT full faith & credit".

So... In a land where women do not have a right to vote, a company that was started by a government, to control government investment, and is run by people in the government is not backed by the government.

But in a land where anyone can be anything, companies that have absolutely no connection to the government end up fully backstopped by the government.

That's kind of depressing.

Steve Keen has updated his debt deflation blog:
http://www.debtdeflation.com/blogs/

I see that the UK banks aka the UK taxpayer hardest hit by Dubai debacle. Any tips for someone in the UK? Apart from leave the country that is.

Jesus, thanks Aaron. Your comment, while truthful as hell, makes me want to go put a gun in my mouth.

But damn, hell of a way to condense it down - kudos, good sir.

Frat: It should make you want to put a gun in somebody else's. Not your own.

Maybe Iceland is feeling a little gang ****d right about now? I'd love nothing more for them to awake from their slumber and shove Iceslave up the collective asses of those Pigmen who saddled every single Icelander with debt that is something like 270% of GDP.

But hey, nice to know in advance Dubai won't be suffering the same fate. Invest accordingly!

Maybe Dubai World should come to the USA and have the US government bail them out. That's what they've been doing with everyone else anyway.

ESMITH-Spell check: "Govermment" should be Government.

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KANYE WEST IS INTERRUPTING THIS SIG LINE TO SAY THAT BEN BERNANKE HAD THE BEST DEFLATIONARY DEPRESSION OF ALL TIME

ME-LOL, Kanye West, LOL!!!