Dubai Defaults on Debt
The Associated Press reported:
Investors are worried that a default by a government investment company in Dubai (NYSE:GAF) over $60 billion in debt payments could have a ripple effect in world financial markets. The fear is that losses in the small emirate, which has drawn wealthy tourists from around the globe in the past decade with its Las Vegas-in-the-Middle East appeal, could imperil a nascent economic rebound.
This isn’t a huge surprise considering the ‘urban jungle in the desert’ exploded during the commercial real estate and oil bubbles. Now that oil has been chopped in half, the credit bubble has deflated, and tourists have less disposable income for luxurious trips to Dubai, seems like the gluttony has transformed into wrath.
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