Dubai in Decline

Anyone who would even think to build all these monstrosities is nuts. Clearly the government and banks are all nuts too they approved all this crap...and there are the stats according to the developer:

Here are a few stats from Dubai Properties, the overall developer of the project:

- Every day between 10,000 and 14,000 people "walk The Walk"

- The 36 towers of residential apartments are "78 per cent occupied"

- Out of 305 retail spaces, there are 290 stores 

What they don't tell you is that they are losing their shirts on every transaction...36 Towers wow! That's a lot of towers to lose money on. This is one hell of a top for the world I think. People have simply lost it!

These are the same commercial mortgages that are about to go belly up, McCabe says. "Dubai may be the most massively overbuilt market in the world," he says, but it's not the only one, and the global nature of real estate investing means that the Middle East's woes could easily be replicated in London, Sydney, Prague or Barcelona. "Real estate financing is world wide, and that means we're going to have defaults on a massive scale," he says. If there's a bright side, it's that U.S banks have already taken most of the hits they'll suffer for their overextension into real estate, says Richard Bove, a banking analyst at Rochdale Securities. He calls this a rare instance of U.S banks learning from past mistakes. 

Clearly, Dick Bove has the capacity to wrong on a staggering level. Perhaps, he should recommend that we buy UAE warrants - despite the likelyhood of a middle east financial collapse that effects the entire region not just Dubai.