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Heads Up! Dubai Could Be The Start

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  • Fri, Nov 27, 2009 - 01:14pm

    #1
    Davos

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    Heads Up! Dubai Could Be The Start

Jim’s article has some excellent merit.

HEADS UP: This could be a lot like 1930s depression where another country across the globe slides into the ocean and drags everyone else underwater. 

 

DUBAI DEFAULTS

DUBAI DEFAULTS Chart on page

 

Is this the spark that sets the world on fire? Dubai has been touted as a miracle economy. Guess what? It was another sham built on debt. They built office buildings, malls, and islands. They used debt from European banks. The buildings are vacant and Dubai can’t make the payments on the debt. They defaulted. The European banks are [email protected]@@@@. European markets were in free fall today. The Dow futures are down 178. If our markets fall 3.5% tomorrow, that would be 400 points on the Dow. The fact is that Dubai hasn’t done anything that the United States has done 1,000 times bigger. The entire world financial system is built upon a foundation of sand and the ocean is coming in. Be prepared.

  • Fri, Nov 27, 2009 - 01:20pm

    #2
    Peak Prosperity Admin

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    Re: ***Heads Up***Dubai Could Be The Start

Yeah gold dropped 60 dollars overnight it has currently retraced 30.

  • Fri, Nov 27, 2009 - 01:43pm

    #3
    Peak Prosperity Admin

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    Re: ***Heads Up***Dubai Could Be The Start

[quote=docmims]

Yeah gold dropped 60 dollars overnight it has currently retraced 30.

[/quote]Yup, looks like people made a flight to (perceived) safety going into securities, most bond yeilds and their underlying currencies were up as a result.

My hunch, it that our market will be popping breakers and Monday the markets will be closed.

My second hunch is that 4 large international banks will collapse, taking banks around the world with them.

The CB’s (if they wanted to keep the charade going) should have stepped in and bailed Dubai out, the sum wasn’t staggering in the great scheme of things.

I could be a bit of a hyper alarmist here in this call —- but I’ve always suspected it would be a country like Poland who tanked, was ignored and 100 years later they’d look back and say, wow, that one little domino started the chain.

  • Fri, Nov 27, 2009 - 02:04pm

    #4
    Peak Prosperity Admin

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    Re: ***Heads Up***Dubai Could Be The Start

Its time to fire up the Hal-9000  and “save” the markets once again. Of course, I hope Hal doesn’t turn on the crew of the SS Goldman Sachs . Bring on the drama!

Black Friday? Fighting the Bubble One Default at a Time

A brutal risk selloff as Dubai seems to have sparked the “sudden” realization that, you know, stimulus just ain’t going to do it all.

Sovereign CDS spreads have been widening since the news, rescheduled conference calls did little for investor confidence and U.S. equity futures have crashed (midnight ET was exciting!) on the order of 4% with crude futures are down 5%. Treasury futures have spiked in inverted sympathy (flight to safety). Spot gold, which was as high as $1191 hours ago has sunk to ~$1140. Japan has intervened following the Yen’s 14 year high mark. The Swiss National Bank is rumored to be intervening continually to un-defend the Swiss Franc. Quite a morning so far, and it’s just beginning.

 

  • Fri, Nov 27, 2009 - 02:29pm

    #5
    Peak Prosperity Admin

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    Re: ***Heads Up***Dubai Could Be The Start

[quote=JAG]

 

Sovereign CDS spreads have been widening

 

[/quote]That’s all I need to read to remember we have a 600 (possibly 1.6 quadrillion) powder keg we are sitting on top of. Dubai could be the unwanted spark. 

  • Fri, Nov 27, 2009 - 03:38pm

    #6
    Peak Prosperity Admin

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    Re: ***Heads Up***Dubai Could Be The Start

Dubai… Didnt see that coming. Your’e right Davos just another house of cards…  Looking back makes sense. 

Staying alert,  nk:)

  • Fri, Nov 27, 2009 - 04:38pm

    #7
    Peak Prosperity Admin

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    Re: ***Heads Up***Dubai Could Be The Start

[quote=JAG]

Its time to fire up the Hal-9000  and “save” the markets once again. Of course, I hope Hal doesn’t turn on the crew of the SS Goldman Sachs . Bring on the drama!

[/quote]

ROFL!!!

Yep, need the Hal-9000, some potent “circuit breakers” there, to regulamate dem’ der markets.

Thank God for the Plunder Procurement Team too!  Or is that Plunge Protection?

  • Fri, Nov 27, 2009 - 04:53pm

    #8
    Peak Prosperity Admin

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    Re: ***Heads Up***Dubai Could Be The Start

If something like this effects all markets, where do we want to have our money?  (Yes, I know gold but that’s not possable with my company run 401K.)  I’ve heard (from Peter Schift and others) that Asian markets are the best place right now but it looks like an event like this hurts all markets.  Of course, Europe will be hurt the most but it looks like Asia is getting damaged too.

><>Larry

  • Fri, Nov 27, 2009 - 05:38pm

    #9
    Peak Prosperity Admin

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    Re: ***Heads Up***Dubai Could Be The Start

Okay, a question from the peanut gallery:

Why would a Dubai default, which could trigger a domino effect, cause gold to go down? I thought gold was supposed to be a hedge against a crisis or collapse. Shoudn’t gold be skyrocketing at this news?

  • Fri, Nov 27, 2009 - 05:57pm

    #10
    Peak Prosperity Admin

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    Re: ***Heads Up***Dubai Could Be The Start

Middle east is rich in Gold.
Might be their only ace in staving off absolute crisis.

Just a thought. Flood the market?

Aaron

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