Dubai World said Uncle on Nov 25 asking for an extension on debt payments totaling some $80 B. Dubai does not have any oil in particular, the oil is in the neighboring countries. So who's in charge now. We have followed Dubai's failure to follow through on a similar project in Las Vegas, City Center. By the way Dubai hosts the world's tallest building, the fountains cost $250 M.
Robert Prechter at Elliott Wave has noted that building skyscrapers is usually conincident with stock market tops. Optimism fuels such projects, the latest being the tallest building ever at the top of the highest stock market ever. That such a project could be built in a country with no real economy says volumes about just how optimsisic everyone got.
Japan stock exchange closed down over 3%, Hong Kong's Hang Seng closed down 4.8%.
Meanwhile, hotels in the US are behind on their debt payments.
Luxury may be fundamental to the human experience as one hotel analyst says but then so is going broke...
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