Financial "2012" from Dec 14?

sandeepmdas · 27th November 2009, 09:07

Guys, there could be another financial meltdown starting from Dec 14. Dubai World, one of the Persian Gulf emirate’s flagship conglomerates, with total debt of about US$59-billion, about twice the size of the gross domestic product.

On Wednesday the Dubai government asked for permission to postpone payment on part of the debt, sending lenders scurrying to try to get a better understanding of the situation.

The nightmare scenario is that a default by Dubai World could set off a “cascading effect” as banks across the world buckle from losses, in the same way that the failure of Lehman Brothers Holdings Inc. last year nearly collapsed the global financial system.

This time it is the European banks that are in the block. HSBC alone has an "exposure" of over $15 billion....

There are so many links. A Google search would be more ideal:
dubai default - Google Search

MutantX · 27th November 2009, 09:22

I fear the same. The meltdown might not have a great effect as it did when Lehman brothers collapsed. But let us wait and see. With this news going around all asian, american and european markets tanked.

shishir_bn · 27th November 2009, 09:25

Holy Cow

. Already people have suffered so much due to US tragedy and now another one waiting to unleash from UK side. This will be devastating. If it happens(90% chances are true) then the 2012 which was predicted might happen this year itself in the corporate world rather. this is really bad news for all

nutmello · 29th November 2009, 14:09

hi all
what could be the impact of a dubai crisis on most of immigrant indians in dubai. heard my neighbour saying that most of the saving accounts have been frozen and people are finding it difficult to withdraw cash from fridays itself? how could all this happen just so fast? any lessons to be learnt? what about exports to dubai and subsequent payments?

stanjohn123 · 29th November 2009, 14:16

Dubai is literally screwed.better not have any business deals there.There will definitely be many lay off's soon.It will affect NRI money coming into India.Thats all i guess.

kiku007 · 29th November 2009, 15:25

Big brother Abu Dhabi will be ready to help out. Dubai is the crown jewel of the UAE and they wouldn't risk it bitting the dust!

NetfreakBombay · 29th November 2009, 21:04

Quote:

Originally Posted by nutmello

heard my neighbour saying that most of the saving accounts have been frozen and people are finding it difficult to withdraw cash from fridays itself?

That is just a rumor. There is NO issue with Dubai's commercial banking system. All banks are fully operational.

aaggoswami · 29th November 2009, 22:07

If Indians return from Dubai to India, this will lead India into Recession.

There is something called BlackSwan concept. According to this, by mid 2010 we will hit another recession that will be even bigger than what we have seen. This was a research analysis by some American Company and read this in an email. I am not sure of authenticity of this grapevine.

srishiva · 29th November 2009, 22:43

Quote:

Originally Posted by aaggoswami

If Indians return from Dubai to India, this will lead India into Recession.

Why would it? I don't think the Dubai Indians fund many businesses in India nor they are major investors in Indian companies.

NetfreakBombay · 29th November 2009, 23:10

Quote:

Originally Posted by NetfreakBombay

That is just a rumor. There is NO issue with Dubai's commercial banking system. All banks are fully operational.

Confirmed by mainstream news.

Quote:

Central Bank has issued a notice to UAE banks and branches of foreign banks operating in the UAE, making available to them a special additional liquidity facility linked to their current accounts at the central bank, at the rate of 50 basis points above the 3 months EIBOR (Emirates interbank offered rate)

Source : Dubai Central Bank to Provide Liquidity to Banks - Economy * Europe * News * Story - CNBC.com

So, regardless of state of economy money in banks is safe.

coolfyre · 30th November 2009, 09:40

An acquaintance of my father-in-law who had been living in Dubai for the last 25 years has been asked to leave. They would be returning to India sometime around 16th December 2009.

Another one who had come down to India for a short trip to India has received an email from his Dubai employer saying that he has been sacked and need not come back. All his dues would be sent to India to his Indian address.

27th November 2009, 09:07	#1
sandeepmdas Senior - BHPian Join Date: Feb 2005 Location: Varkala Posts: 1,539 Thanked: 2,492 Times	Financial "2012" from Dec 14? Guys, there could be another financial meltdown starting from Dec 14. Dubai World, one of the Persian Gulf emirate’s flagship conglomerates, with total debt of about US$59-billion, about twice the size of the gross domestic product. On Wednesday the Dubai government asked for permission to postpone payment on part of the debt, sending lenders scurrying to try to get a better understanding of the situation. The nightmare scenario is that a default by Dubai World could set off a “cascading effect” as banks across the world buckle from losses, in the same way that the failure of Lehman Brothers Holdings Inc. last year nearly collapsed the global financial system. This time it is the European banks that are in the block. HSBC alone has an "exposure" of over $15 billion.... There are so many links. A Google search would be more ideal: dubai default - Google Search Last edited by sandeepmdas : 27th November 2009 at 09:12.
	() Thanks

27th November 2009, 09:22	#2
MutantX BHPian Join Date: Sep 2009 Location: Madras Posts: 868 Thanked: 93 Times View My Garage	I fear the same. The meltdown might not have a great effect as it did when Lehman brothers collapsed. But let us wait and see. With this news going around all asian, american and european markets tanked.
	() Thanks

27th November 2009, 09:25	#3
shishir_bn Senior - BHPian Join Date: Nov 2009 Location: Bangalore Posts: 1,195 Thanked: 120 Times	Holy Cow. Already people have suffered so much due to US tragedy and now another one waiting to unleash from UK side. This will be devastating. If it happens(90% chances are true) then the 2012 which was predicted might happen this year itself in the corporate world rather. this is really bad news for all
	() Thanks

29th November 2009, 14:09	#4
nutmello BHPian Join Date: Jul 2007 Location: mysore Posts: 102 Thanked: 175 Times	dubai economy- how will it affect fellow indians in dubai? hi all what could be the impact of a dubai crisis on most of immigrant indians in dubai. heard my neighbour saying that most of the saving accounts have been frozen and people are finding it difficult to withdraw cash from fridays itself? how could all this happen just so fast? any lessons to be learnt? what about exports to dubai and subsequent payments?
	() Thanks

29th November 2009, 14:16	#5
stanjohn123 Senior - BHPian Join Date: Oct 2008 Location: TN 75 Posts: 1,345 Thanked: 1,798 Times View My Garage	Dubai is literally screwed.better not have any business deals there.There will definitely be many lay off's soon.It will affect NRI money coming into India.Thats all i guess.
	() Thanks

29th November 2009, 15:25	#6
kiku007 Distinguished - BHPian Join Date: Apr 2005 Location: AU Posts: 2,323 Thanked: 7,197 Times	Big brother Abu Dhabi will be ready to help out. Dubai is the crown jewel of the UAE and they wouldn't risk it bitting the dust!
	() Thanks

29th November 2009, 22:07	#8
aaggoswami Senior - BHPian Join Date: May 2007 Location: Vadodara Posts: 4,982 Thanked: 2,931 Times	If Indians return from Dubai to India, this will lead India into Recession. There is something called BlackSwan concept. According to this, by mid 2010 we will hit another recession that will be even bigger than what we have seen. This was a research analysis by some American Company and read this in an email. I am not sure of authenticity of this grapevine.
	() Thanks

30th November 2009, 09:40	#11
coolfyre BHPian Join Date: Jan 2009 Location: Bangalore Posts: 67 Thanked: 2 Times	Dubai layoffs have begun... An acquaintance of my father-in-law who had been living in Dubai for the last 25 years has been asked to leave. They would be returning to India sometime around 16th December 2009. Another one who had come down to India for a short trip to India has received an email from his Dubai employer saying that he has been sacked and need not come back. All his dues would be sent to India to his Indian address.
	() Thanks