the NY Times reports Dubai is having real trouble servicing their signature projects and that it’s showing up in Dubai Government Debt Credit Default Swaps.
Dubai World has $59 billion of liabilities, its subsidiary Nakheel said in August, a large proportion of Dubai’s total debt of $80 billion.
“Dubai World intends to ask all providers of financing to Dubai World and Nakheel to ’standstill’ and extend maturities until at least 30 May 2010,” the government said in a statement.
The cost of insuring Dubai government debt against default using 5-year credit default swaps soared, jumping over 100 basis points to 420.6 from a close of 318 one day earlier. Nakheel’s Islamic bond prices fell more than 20 points to 87.
Read the article it indicates the Dubai banks are doing odd things, Offerings are closing out early,
funds aren’t being well reported.
But a 25% jump in CDS? that’s a huge warning sign.
and with everything so leveraged and interconnected.
we could never tell what will knock down what.
[quote=doofrat]Dubai and Las Vegas are both hell holes in the desert, but Vegas has: Free Booze, Gambling, and Titty Dancers. What does Dubai have again?[/quote]
Proximity to Saudi Arabia, where-by their overpriced booze and women without burkas look like a freaking porn set to that area of the world.
[quote=doofrat]Dubai and Las Vegas are both hell holes in the desert, but Vegas has: Free Booze, Gambling, and Titty Dancers. What does Dubai have again?[/quote]
Proximity to Saudi Arabia, where-by their overpriced booze and women without burkas look like a freaking porn set to that area of the world.
[quote=doofrat]Dubai and Las Vegas are both hell holes in the desert, but Vegas has: Free Booze, Gambling, and Titty Dancers. What does Dubai have again?[/quote]
Proximity to Saudi Arabia, where-by their overpriced booze and women without burkas look like a freaking porn set to that area of the world.
[quote=doofrat]Dubai and Las Vegas are both hell holes in the desert, but Vegas has: Free Booze, Gambling, and Titty Dancers. What does Dubai have again?[/quote]
Proximity to Saudi Arabia, where-by their overpriced booze and women without burkas look like a freaking porn set to that area of the world.
[quote=doofrat]Dubai and Las Vegas are both hell holes in the desert, but Vegas has: Free Booze, Gambling, and Titty Dancers. What does Dubai have again?[/quote]
Proximity to Saudi Arabia, where-by their overpriced booze and women without burkas look like a freaking porn set to that area of the world.
