Dubai Dumps Debts

“We’ll pay you…later…much

Fears of a dangerous new phase in the economic crisis swept around the globe yesterday as traders responded to the shock announcement that a debt-laden Dubai state corporation was unable to meet its interest bill.

Shares plunged, weak currencies were battered and more than £14 billion was wiped from the value of British banks on fears that they would be left nursing new losses.

…Although the scale of Dubai’s debts is comparatively modest at $80 billion (£48 billion), the uncertainty spooked the markets, with no one sure who its creditors are. Several banks rushed out statements to reassure investors that their exposure was small.

…Dubai World, the state-owned corporation that began the panic on Wednesday by demanding a standstill on its interest payments, worsened the mood when it postponed a teleconference for its bond holders, saying the phone lines were overwhelmed.

I may try that line of approach with my mortgage company: “I’m not paying any more interest. Nyah. (sticks out tongue)”

We’ll see how things hold up this morning, if this “job-loss recovery” that noted tax cheat Tim Geithner has engineered for us can stand some minor shocks.

2 Responses to “Dubai Dumps Debts”

  1. Skyler says:

    I thought that whole “not gonna pay the mortgage” is part of how we got in trouble.

  2. Mark says:

    Rutro, Shaggy.

    If Dubai, Inc. starts to default it could start an economic domino effect in the Gulf and beyond.

    But no worries, with the instability leading to inevitable armed conflict in that part of the world will drive oil and gas prices sky high, and they’ll be back where they belong!

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