03-07-2009, 05:06 PM
It was very interesting to read all this although I could only read a portion of every post, being very long. Finally we are into discussion that is really mind bending. If I am not wrong SUMAIRALAM said economies of US is booming due to rising oil prices. I disagree. Crude oil has gone down to 46 dollars approx. a barrel from as high as 140 dollars a barrel. OPEC is considering tightening the supplies to raise the oil prices in future which might cause prices to go up but for US there is still no hope of recovery. This global recession will last for years to come. We shouldn't forget the fact that these Middle Eastern countries are heavily invested in US treasuries. So far what we have seen is just a TEASER, the whole movie is yet to come. Dubai was or will be bailed out by Abu Dhabi. Dubai has amassed thousands of abandoned cars on the sides of roads. Who do you think will take all these assets or unfinished real estate projects?
The truth is capitalism is teetering at its edges. All these Arab countries will have to support US in order to save their own asses. Arabs already bailed out Master Card once. Now if all the economies in the world won't support US all their investments will be gone just like others. But US still can't pay back these countries because it has no MONEY left. All these countries will have to write off their loans at some point in future. Dubai still must have money but if it did the same thing as US.i.e bailing out the banks and institutions it will be adding fuel to fire. Truth is nobody is safe from these crises. Now it's dollar's turn to meet its fate. Interestingly, Dubai must be having huge dollar reserves, what if they are worth are few pennies in a year or two? Won't it be interesting to see $100 worth 10 dollars? Banks who have unpaid car loans and mortgages will starting defaulting one by one, which will create a credit freeze. People who benefited from these crises are still getting more money from govts. I don't know much about Dubai but I know it probably doesn't have a sound financial structure. It is heavily dependent upon oil exports and foreign investment which now will turn out to be a bad investment for all the foreigners. Consumer sentiment will stay low and joblessness will surge. Govts. themselves can't create jobs. Private sector does this job. Govt. only gets the money that is paid in taxes by people. If govts. keep printing money to bail out everybody they will cause hyper inflation. Dubai has no other exports except oil. Russia already has second biggest reserves in oil in the world and will be competing in global market. Alaska is rich with oil. There is no easy solution to this problem except to stop these people from gambling with investors' money. Now speculators are in commodities. Anybody seen gold prices lately? Except oil every commodity is up. How brutal that people are dying with hunger due to astronomical food prices and these pigs speculators are still putting pressures on commodity prices.
The only reason US is still standing is due to its reputation and people's confidence in it. The day that's gone, we'll see a ripple effect. You have every single bull crap thing pegged to US dollar.
Dubai is just a blip on the screen. It will definitely be hard for people who lost their jobs due to Dubai's strict immigration policies. So bottom line stay away from Dubai.
I am not an economist nor any other investment related professional. These are only my views based on my own findings. Please don't take these as any kind of future predictability or an advice.
The truth is capitalism is teetering at its edges. All these Arab countries will have to support US in order to save their own asses. Arabs already bailed out Master Card once. Now if all the economies in the world won't support US all their investments will be gone just like others. But US still can't pay back these countries because it has no MONEY left. All these countries will have to write off their loans at some point in future. Dubai still must have money but if it did the same thing as US.i.e bailing out the banks and institutions it will be adding fuel to fire. Truth is nobody is safe from these crises. Now it's dollar's turn to meet its fate. Interestingly, Dubai must be having huge dollar reserves, what if they are worth are few pennies in a year or two? Won't it be interesting to see $100 worth 10 dollars? Banks who have unpaid car loans and mortgages will starting defaulting one by one, which will create a credit freeze. People who benefited from these crises are still getting more money from govts. I don't know much about Dubai but I know it probably doesn't have a sound financial structure. It is heavily dependent upon oil exports and foreign investment which now will turn out to be a bad investment for all the foreigners. Consumer sentiment will stay low and joblessness will surge. Govts. themselves can't create jobs. Private sector does this job. Govt. only gets the money that is paid in taxes by people. If govts. keep printing money to bail out everybody they will cause hyper inflation. Dubai has no other exports except oil. Russia already has second biggest reserves in oil in the world and will be competing in global market. Alaska is rich with oil. There is no easy solution to this problem except to stop these people from gambling with investors' money. Now speculators are in commodities. Anybody seen gold prices lately? Except oil every commodity is up. How brutal that people are dying with hunger due to astronomical food prices and these pigs speculators are still putting pressures on commodity prices.
The only reason US is still standing is due to its reputation and people's confidence in it. The day that's gone, we'll see a ripple effect. You have every single bull crap thing pegged to US dollar.
Dubai is just a blip on the screen. It will definitely be hard for people who lost their jobs due to Dubai's strict immigration policies. So bottom line stay away from Dubai.
I am not an economist nor any other investment related professional. These are only my views based on my own findings. Please don't take these as any kind of future predictability or an advice.
