Is Dubai about to go Bankrupt?

[jficquette]

[quote=Eugene][quote=jficquette]
Russia owes $400B to mostly western banks. If oil gets back to where it belongs which is around $25 a barrel and stays there for a few months then Russia will likely default along with Dubai and probably others.

John[/quote]

This is only accurate if you include private debt (in which case, I’m not sure if it’s appropriate to talk about the default of Russia as an entity). Russian government public debt is around 100B, and only 40B of that is held by western banks.[/quote]

It includes private debt to Russian companies in the oil and gas business and other enterprises.

Here is an old article about it. http://seekingalpha.com/article/119590-russia-about-to-default-on-sovereign-debt-again

[jficquette]

They make money at $10/BBL back in the 70’s.[/quote]

Cost of extraction in Iraqi and Saudi Fields is approx $4 per barrel.

John

[jficquette]

They make money at $10/BBL back in the 70’s.[/quote]

Cost of extraction in Iraqi and Saudi Fields is approx $4 per barrel.

John

[jficquette]

They make money at $10/BBL back in the 70’s.[/quote]

Cost of extraction in Iraqi and Saudi Fields is approx $4 per barrel.

John

[jficquette]

They make money at $10/BBL back in the 70’s.[/quote]

Cost of extraction in Iraqi and Saudi Fields is approx $4 per barrel.

John

[jficquette]

They make money at $10/BBL back in the 70’s.[/quote]

Cost of extraction in Iraqi and Saudi Fields is approx $4 per barrel.

John

[Eugene]

[quote=jficquette]
It includes private debt to Russian companies in the oil and gas business and other enterprises.
[/quote]

It’s misleading to call private debt to Russian companies “sovereign debt” as the article does. It’s the direct equivalent of Countrywide’s obligations to European pension funds. A lot of the money was passed through to Russian private citizens in the form of euro-denominated mortgages.

[Eugene]

[quote=jficquette]
It includes private debt to Russian companies in the oil and gas business and other enterprises.
[/quote]

It’s misleading to call private debt to Russian companies “sovereign debt” as the article does. It’s the direct equivalent of Countrywide’s obligations to European pension funds. A lot of the money was passed through to Russian private citizens in the form of euro-denominated mortgages.

[Eugene]

[quote=jficquette]
It includes private debt to Russian companies in the oil and gas business and other enterprises.
[/quote]

It’s misleading to call private debt to Russian companies “sovereign debt” as the article does. It’s the direct equivalent of Countrywide’s obligations to European pension funds. A lot of the money was passed through to Russian private citizens in the form of euro-denominated mortgages.

[Eugene]

[quote=jficquette]
It includes private debt to Russian companies in the oil and gas business and other enterprises.
[/quote]

It’s misleading to call private debt to Russian companies “sovereign debt” as the article does. It’s the direct equivalent of Countrywide’s obligations to European pension funds. A lot of the money was passed through to Russian private citizens in the form of euro-denominated mortgages.

[Eugene]

[quote=jficquette]
It includes private debt to Russian companies in the oil and gas business and other enterprises.
[/quote]

It’s misleading to call private debt to Russian companies “sovereign debt” as the article does. It’s the direct equivalent of Countrywide’s obligations to European pension funds. A lot of the money was passed through to Russian private citizens in the form of euro-denominated mortgages.

[Arraya]

[quote=jficquette]They make money at $10/BBL back in the 70’s.[/quote]

Cost of extraction in Iraqi and Saudi Fields is approx $4 per barrel.

John[/quote]

Today ain’t the 70s. It used to cost 1 dollar a barrel back in the day. Iraqi fields are the cheapest and most unexplored, true. Saudi range from like 10-50 depending on the process, they are pretty much squeezed dry of all the easy to get stuff and peaked out.

Turns out, the more you suck out of the ground the more expensive it gets.

Another issue at 25 per barrel. Zero alternatives gets funded. It practically shuts down most companies. The markets is very stupid and shortsighted. It does not know best. The invisible hand is giving us the finger.

[Arraya]

[quote=jficquette]They make money at $10/BBL back in the 70’s.[/quote]

Cost of extraction in Iraqi and Saudi Fields is approx $4 per barrel.

John[/quote]

Today ain’t the 70s. It used to cost 1 dollar a barrel back in the day. Iraqi fields are the cheapest and most unexplored, true. Saudi range from like 10-50 depending on the process, they are pretty much squeezed dry of all the easy to get stuff and peaked out.

Turns out, the more you suck out of the ground the more expensive it gets.

Another issue at 25 per barrel. Zero alternatives gets funded. It practically shuts down most companies. The markets is very stupid and shortsighted. It does not know best. The invisible hand is giving us the finger.

[Arraya]

[quote=jficquette]They make money at $10/BBL back in the 70’s.[/quote]

Cost of extraction in Iraqi and Saudi Fields is approx $4 per barrel.

John[/quote]

Today ain’t the 70s. It used to cost 1 dollar a barrel back in the day. Iraqi fields are the cheapest and most unexplored, true. Saudi range from like 10-50 depending on the process, they are pretty much squeezed dry of all the easy to get stuff and peaked out.

Turns out, the more you suck out of the ground the more expensive it gets.

Another issue at 25 per barrel. Zero alternatives gets funded. It practically shuts down most companies. The markets is very stupid and shortsighted. It does not know best. The invisible hand is giving us the finger.

[Arraya]

[quote=jficquette]They make money at $10/BBL back in the 70’s.[/quote]

Cost of extraction in Iraqi and Saudi Fields is approx $4 per barrel.

John[/quote]

Today ain’t the 70s. It used to cost 1 dollar a barrel back in the day. Iraqi fields are the cheapest and most unexplored, true. Saudi range from like 10-50 depending on the process, they are pretty much squeezed dry of all the easy to get stuff and peaked out.

Turns out, the more you suck out of the ground the more expensive it gets.

Another issue at 25 per barrel. Zero alternatives gets funded. It practically shuts down most companies. The markets is very stupid and shortsighted. It does not know best. The invisible hand is giving us the finger.

[Author]

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