The spectacular rise and fall of Dubai

[dmcowen674]

In case some o you didn't notice, something like 60%+ of ALL mortgages in Nevada are underwater. LV is having a hard time. Perhaps not as hard as dubai, but they are hard to compare.

It's not just Nevada with a ton of underwater mortgages.

A good portion of the country has underwater mortgages.

We were at a local watering hole last night that the bartender came here from Las Vegas because he said it is completely dead there.

 

[StageLeft]

It's not just Nevada with a ton of underwater mortgages.

A good portion of the country has underwater mortgages.

We were at a local watering hole last night that the bartender came here from Las Vegas because he said it is completely dead there.

I think it's up to about 25% nationwide, I'm fairly sure it was only 10-15 6 (?) or so months ago, but pretty sure npr said it's up to about 25% nationwide now.

 

[Acanthus]

If the banks were halfway intelligent they would give people forbearance periods for 6-12 months rather than confiscate rapidly depreciating assets.

Keep them on the hook for the value of the loan.

 

[MrMatt]

one slight difference, not many roads to Dubai. Almost all tourist fly in, and in this economy not as many are flying. With LV, a lot of people drive there. and if you do fly, the flights are short and cheaper.

aaah this is true. very true. Hadn't thought of that.

 

[MagnusTheBrewer]

I'm not an isolationist but, unless you have family or investments there, who the fuck cares what happens in Dubai?

 

[nageov3t]

I'm not an isolationist but, unless you have family or investments there, who the fuck cares what happens in Dubai?

Dubai's Debt Reckoning: How one bursting bubble could feed the next one

Dubai Debt Woes Raise Fear of Wider Problem

 

[Aimster]

They will be bailed out by the UAE.
Dubai is too big to fail, if they fail the UAE will fail

 

[Wreckem]

They will be bailed out by the UAE.
Dubai is too big to fail, if they fail the UAE will fail

Abu Dhabi already bailed them out earlier this year. They seem like they are going to again, but with reluctance.

The Dubai experiment needs to die quicker. Its been far to slow(already reaching a year). Dubai is far to unstustainable.

 

[Zorba]

aaah this is true. very true. Hadn't thought of that.

Vegas is also on pretty hard times. I read that the condos at the new City Center are almost completely unsold. There is also another massive project on the North end of the strip that has been on hold for over a year now (I forget the name, Boyd is the developer). A lot of the casinos are also on hard times, for example Hooters.

 

[Wreckem]

Vegas is also on pretty hard times. I read that the condos at the new City Center are almost completely unsold. There is also another massive project on the North end of the strip that has been on hold for over a year now (I forget the name, Boyd is the developer). A lot of the casinos are also on hard times, for example Hooters.

Don't froget the Fertitta Cousins' owned Station casinos. The cousins made a huge mistake buying out Station shareholders in '06. They are going tits up.

Landry's Inc, ran by Tilman Fertitta, is doing fine because they only have the Golden Nugget.

 

[Zebo]

dont let Obama know, hell want to bail them out

Zing! nice one.


*better keep comments like this on the down low - Black Bush (BB) can do no wrong according to over 67% of AT P&N and any comments contrary will be met with extreme hostility ranging from name calling to outright threats.

 

[Modelworks]

Dubai and the Arab countries have some interesting laws in banking. One of them is that if you cannot pay a creditor what you owe then you go to jail. The airport parking lots are filled with abandoned cars where people knowing they could not pay their bills took a flight out of the country and never came back. If we did the same in the USA we couldn't build prisons fast enough.


http://debtprison.net/wordpress/297/the-real-debt-prison-in-united-arab-emirates-uae/

The UAE doesn’t have credit reporting agencies like Equifax (yet) because they still try and manage the country’s affairs pretending as though they live in a desert wilderness, void of any skyscrapers or pocketbook hustlers. The credit industry, if you want to call it that, doesn’t believe it’s their business to hover over your credit report. These reporting agencies are impersonal and are not part of a legitimate business contract between two human beings… hence they do not exist. You can literally get personal loans for up to $68,000 with nothing more than your word and a blank check.

n the UAE, if your check bounces they will put you in jail. Credit is extended to you in a series of IOU’s. For example, if I want to buy a car for $10,000 and make payments for two years then I will have to write 24 checks – in advance! I will give the creditor 24 checks in the amount of $416.66 and dated in advance for each month I would be making payments. The bank then deposits each check in the month for which it was written.

It is illegal to write a blank check in the UAE… or at least to have such a blank check, signed by you to be cashed. Therefore when taking out large personal loans, the bank will require you to hand them a signed check with a blank amount. Their logic is simple enough: fail to pay them and they cash the check – which leads to your arrest and imprisonment.

You cannot get out of jail so you can work and repay the debt. You will remain in jail until a relative, charity group, wealthy businessman or even a member of the ruling family pays the debt.Planning on leaving the UAE with defaulted debt to escape payment? I wouldn’t go back because they’ll blacklist your passport and arrest you at the airport upon reentry. Straight to jail with your sorry butt! In fact the entire Middle East can be a problem for you since neighboring countries may extradite you back to the Dubai creditors. Debt in the UAE never dies, it never goes away.

 

[Ns1]

I'm surprised it hasn't been mentioned how Dubai World (or whatever) missed it's interest payment last week.

And let's not forget the media blackout (in Dubai) regarding said debacle

DUBAI (Reuters) – The Dubai government said on Monday it wasn't responsible for the debts of Dubai World, dealing a blow to creditors' assumptions that the Arab emirate would guarantee the conglomerate's liabilities.

"Creditors need to take part of the responsibility for their decision to lend to the companies," said Abdulrahman al-Saleh, director general of Dubai's Department of Finance. "They think Dubai World is part of the government, which is not correct."

United Arab Emirates stocks plunged on Monday as investors waited for clarity on Dubai's request for a delay until May 2010 on repaying billions of dollars in debt issued by Dubai World and its Nakheel unit, developer of three distinctive palm-shaped islands in the emirate.

http://news.yahoo.com/s/nm/20091130/bs_nm/us_dubai

 

[EagleKeeper]

Vegas is also on pretty hard times. I read that the condos at the new City Center are almost completely unsold. There is also another massive project on the North end of the strip that has been on hold for over a year now (I forget the name, Boyd is the developer). A lot of the casinos are also on hard times, for example Hooters.

Echelon_Place - just south of Sahara - they tore down the Stardust for it.

 

[Zorba]

Echelon_Place - just south of Sahara - they tore down the Stardust for it.

That's the one

 

[bfdd]

Dubai and the Arab countries have some interesting laws in banking. One of them is that if you cannot pay a creditor what you owe then you go to jail. The airport parking lots are filled with abandoned cars where people knowing they could not pay their bills took a flight out of the country and never came back. If we did the same in the USA we couldn't build prisons fast enough.


http://debtprison.net/wordpress/297/the-real-debt-prison-in-united-arab-emirates-uae/

Really? I can get 68k with just my name and a blank check? I wonder how much round trip to Dubai is...

 

[zephyrprime]

If the banks were halfway intelligent they would give people forbearance periods for 6-12 months rather than confiscate rapidly depreciating assets.

Keep them on the hook for the value of the loan.

Typically, it takes about a year for banks to actually foreclose so in fact banks are giving long forebearances but simply not announcing it to the public because doing so is a moral hazard for mortgage holders.

 

[zephyrprime]

Vegas is also on pretty hard times. I read that the condos at the new City Center are almost completely unsold. There is also another massive project on the North end of the strip that has been on hold for over a year now (I forget the name, Boyd is the developer). A lot of the casinos are also on hard times, for example Hooters.

Seriously. But it's good for vacationers like me. I got 5 days at Mandalay bay over new years with my friend for only ~$1100 which includes airfare!

 

[Ns1]

"Lease rates are below those of 1996, a reflection of the true extent of the downturn," CBRE said its third-quarter report on the commercial leasing market, written before Dubai World suspended its debt payments.

supply > demand ftl

http://www.breitbart.com/article.php?id=CNG.1433247da714fd1ce569b946f4746c07.b1&show_article=1

 

[dubai_property]

When you travel to Dubai you will be impressed with everything as high stander of life and amazing property design they have plus their main source of income is tourism and selling property and oil.


Rental Property

 

[Amused]

We've been dubaispammed!!!

Talk about desperate!!!

 

[Ns1]

congrats, you were probably just paid 25 cents to post that!