The economic crisis is global...no duh right? For quite a few years now Dubai has been one of the prosperous cities in the Middle East. The city was built up very quickly with huge hotels, apartments, and businesses. In other words, it got rich quick. However, now Dubai is quickly falling into debt. Last week, a firm in Dubai announced that it couldnt make some of its debt payments. Like the U.S. government at the beginning of the financial crisis, the government in Dubai refuses to intervene and bail out the firm. Unfortunatly, other countries may soon face the same troubles that Dubai faces. The problems are due to decreased income and over spending on behalf of the companies. Sound familiar? Some of the countries that are predicted to end up in the same boat as Dubai are Greece, Romania, Spain, and Ireland. While these countries economies are plunging for various reasons, it seems like they may end up like Dubai
here is the link so you guys can read the article for yourselves:
http://money.cnn.com/2009/12/01/news/dubai.debt.fortune/index.htm
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6 comments:
Wow. That's a lot of countries going into debt :( I wasn't really aware of the economic crisis at a global state. Since I live here my main focus is mainly on the U.S. economic crisis. Thanks for posting this blog Shadan! I am no longer closed off from the rest of the world's economic problems(specifically the middle east)!
-Emily Niemann
It's interesting to see that I posted my blog about the same topic, yet we used different sources. I checked our articles, and even the articles themselves are different. I guess that means that this subject is either somehow breaking news, or that it is popular. Cool.
I agree with Preston, it is pretty interesting that so many sources are talking about this issue right now. I wonder why they didn't a few months before...
I find these predictions interesting but a little far fetched. The shocking economic-demise of Dubai correlates to its shocking economic rise a few years ago. While I agree that the countries named are in danger of an economic depression, the chance of it happening at the rate of Dubai is very small because these countries have more stable economic industries than Dubai.
I too read this news recently. I think there is a danger at Dubai having to default at a 59 billion loan that lead to this news spreading so quickly. I think it goes back to the economic problem with people or countries borrowing money and not being able to return it. According to data from the Bank for International Settlements, foreign banks have 130 billion of exposure to the United Arab Emirates, and Britain having 51 billion and US having debs of 13 billion.
Oh noes! I guess this means that Dubai will have to put its man-made islands shaped like the globe and palm trees on hold. What a tragedy.
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