So I read on how the emerging world could suffer because of Dubai.
Throughout the year there has been an increase in general risk-taking, but investors need to start being "more discriminating," the broker said.
It highlighted high yielding local currency markets such as Brazil, Indonesia, Hungary and Poland as among the most crowded along with Russian bank and corporate bonds.
Turkish markets also aren’t properly pricing in risk, with the cost of buying protection on sovereign debt around 1.5 percentage points cheaper than it should be, the broker added.
Lars Christensen, chief analyst at Danske Bank in Copenhagen, said investors are already nervous over the rise of riskier assets, such as those in emerging markets.
"There’s nervousness about the withdrawal of liquidity. The Dubai situation provides that shock that makes investors further reduce risk," Christensen said.
What a pile of steaming crap! Want to know why Dubai is in the situation it is in?
How about the palm islands?
The first two islands will comprise approximately 100 million cubic meters of rock and sand. Palm Deira will be composed of approximately 1 billion cubic meters of rock and sand. All materials will be quarried in the UAE. Among the three islands there will be over 100 luxury hotels, exclusive residential beach side villas and apartments, marinas, water theme parks, restaurants, shopping malls, sports facilities and health spas.
Or what about the world’s tallest building?
More than 1,000 pieces of art will adorn the interiors of Burj Dubai, while the lobby of Burj Dubai will have the artwork of 196 bronze and brass alloy cymbals representing the 196 countries of the world. The visitors in the lobby will be able to hear a distinct timbre as the cymbals, plated with 18-carat gold, are struck by dripping water, intended to mimic the sound of water falling on leaves.
The problem of Dubai is that it was spending on crap! They were spending on luxury, gold and what have you. Is it any wonder that Dubai is in the trouble that it is in now?
BUT, want to know the really interesting bit. While Dubai was spending like a drunken sailor, its neighbour emirate Abu Dhabi was spending on a solar city called Masdar City.
The project is headed by the Abu Dhabi Future Energy Company (ADFEC). Initiated in 2006, the project is projected to cost US$22 billion and take some eight years to build, with the first phase scheduled to be complete and habitable in 2009. The city is planned to cover 6 square kilometres (2.3 sq mi) and will be home to 45,000 to 50,000 people and 1,500 businesses, primarily commercial and manufacturing facilities specialising in environmentally-friendly products, and more than 60,000 workers are expected to commute to the city daily. It will also be the location of a university, the Masdar Institute of Science and Technology (MIST), which will be assisted by the Massachusetts Institute of Technology (MIT). Automobiles will be banned within the city; travel will be accomplished via public mass transit and personal rapid transit systems, with existing road and railways connecting to other locations outside the city. The absence of motor vehicles coupled with Masdar’s perimeter wall, designed to keep out the hot desert winds, allows for narrow and shaded streets that help funnel cooler breezes across the city.
Abu Dhabi is spending money in a way that they can make money in the future. Who is Dubai begging money from? Oh yeah Abu Dhabi. So to say that Dubai is risking the emerging world is pure crap because anybody who believed in Dubai was an idiot! Dubai stands alone in its idiocy!