This is what you can expect when you loan money to arabs, they couldn't care less about the infidels and returning their money. So much for their pipe dream of a global financial center. Back to the tents and camels with them!
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Global stock markets fell the day after one of Dubai’s state-owned holding firms shocked the financial world with a debt default request.
Dubai World, saddled with a $59 billion (Rs 2,74,350 crore) debt, on Wednesday asked creditors to defer payments for six months. Its subsidiaries include Nakheel, the construction firm famous for making country-shaped islands, and DP World, owners of five port terminals in India.
The Financial Times called it a “bombshell”. London and Frankfurt stocks fell 1.86 and 1.80 per cent, in the Asian markets’ footsteps. European banks hold $40 billion (Rs 1,86,000 crore) worth of Dubai World debt.
Credit rating agency Standard & Poor’s said Dubai World’s announced plans to restructure its debt “may be considered a default”. The default and tighter Chinese lending contributed to the fall. “But Dubai is bigger,” said David Morrison of financial risk firm GFT.
http://www.hindustantimes.com/News-Feed/business/Gulf-of-debt-Dubai-default-shakes-financial-world/Article1-480595.aspx-----------------------
The largest European market indices, the German Dax and the French CAC are down more than 3% each. U.S. markets should follow with a severe decline when they next open after the Thanksgiving holiday. The good news is that the dollar, which has been tanking lately, has strengthened as investors flee to it for safety. This should serve as a lesson to Europeans not to naiively loan to those who want to destroy them. Give the money to JTF instead!
Topic: Dubai Defaults on Debt, Global Markets Tank (Read 506 times)