Thursday, December 03, 2009

Mirage in the Desert... John Browne writes that Dubai has constructed "the perfect metaphor of the 21st century economy: a mirage built on debt"... points out the holders of Dubai's debt & real estate assets are the major Western banks already weakened by their own debt-ridden problems.. sees the bursting of the Dubai bubble as meaning more write-downs for the Western banks... also sees potential cascade of derivative-related defaults spreading to cause a devastating implosion of international financial markets... recommends precious metals for wealth preservation... (3*)

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