The Dubai crash

[italkcash]

As we thought it would soon be over, news came out late last week about Dubai was about to crash. The state supported company Nakheel has a debt in the billions to investors all over the world, and the government of Dubai asked investors for a payback sometime next year and postponed the return of investments.

Early this week it infuriated the markets and most indexes felt sharply, especially in the middle east and around Dubai in the UAE. Abu Dhabi refused yesterday to bail out Dubai and its debt which caused even more panik on the markets.

It probably wont be a state collapse in the same sense as Argentina in 2001, but it is the closest we have been this year to a huge crush. Island did go somehow banktrup but the money invested in Island is far from the mega projects going on in Dubai.

We can all assume more news will arise over the course of the next many months, keeping all investors around the globe in the same strong phase they must always keep themselves in. Investment is an art!