Dubai's debt problems have started to crack the world financial system again.
The earlier problem was the Subprime lending. Is it the Oil-rich extravagance this time?
Let us analyse : Dubai was not the only country that was extravagant during the good days. There were many more countries that were extravagant. The planning done during those boom days was probably not sufficient checked for failures nor was much thought given to the fact on whether there will be sufficient returns, let alone a collapse.
If you had built a factory of some really useful product. Then you saw a recession. It does not probably seriously matter to you. When the economy improves, the factory will produce again and you will sell again. On the contrary, consider the properties and the extravagant construction of Dubai - will there be sufficient takers for them when the economy improves? Maybe there will be? maybe not?
Considering the oil prices, I would believe that the oil prices will drop by at least $10 to maybe USD65 in December. It cannot rise. There is simply not enough force to spend, even among the impulsive investors.
We need to wait and see through December.
The earlier problem was the Subprime lending. Is it the Oil-rich extravagance this time?
Let us analyse : Dubai was not the only country that was extravagant during the good days. There were many more countries that were extravagant. The planning done during those boom days was probably not sufficient checked for failures nor was much thought given to the fact on whether there will be sufficient returns, let alone a collapse.
If you had built a factory of some really useful product. Then you saw a recession. It does not probably seriously matter to you. When the economy improves, the factory will produce again and you will sell again. On the contrary, consider the properties and the extravagant construction of Dubai - will there be sufficient takers for them when the economy improves? Maybe there will be? maybe not?
Considering the oil prices, I would believe that the oil prices will drop by at least $10 to maybe USD65 in December. It cannot rise. There is simply not enough force to spend, even among the impulsive investors.
We need to wait and see through December.