Dubai seems to be broke.
The headlines say “Treasuries Gain as Dubai Debt Delay Spurs Global Risk Aversion,” what happened to Dubai?
They have been giving away money to everyone that is willing to deal with them and/or show up to their conferences, festivals and events.
Is this a case of the King is naked? or a plot to avoid paying their creditors?
ETurbonews reports that “Just a year after the global downturn derailed Dubai’s explosive growth, the city is now so swamped in debt that it’s asking for a six-month reprieve on paying its bills – causing a drop on world markets Thursday and raising questions about Dubai’s reputation as a magnet for international investment.
The fallout came swiftly and was felt globally after Wednesday statement that Dubai’s main development engine, Dubai World, would ask creditors for a “standstill” on paying back its $60 billion debt until at least May…in total, the state-backed networks nicknamed Dubai Inc. are $80 billion in the red and the emirate needed a bailout earlier this year from its oil-rich neighbor Abu Dhabi, the capital of the United Arab Emirates,” says BARBARA SURK at AP.com