Fall of Dubai
Dubai has accumulated more than $80-billion in total debt over the last four years as part of a runaway building boom designed to transform the Gulf emirate into a tourist destination and financial hub of the Middle East. With access to cheap credit, state-backed companies – most notably Dubai World – pushed forward with a series of ostentatious infrastructure projects, including an offshore palm-shaped tourist resort built on sand foundations and the world’s tallest skyscraper.
When the global financial crisis struck last year, however, Dubai’s real estate market crashed and property prices plunged by more than 50 per cent.
Now that the United Arab Emirate nation can’t afford to pay its creditors. First Reykjavik now Dubai, who is next?
I guess those will be the era for IMF, it will sell its gold and provide some liquidity to finance failing economies. I expect some more gold sales from IMF