to the small business down the street.
The impending bankruptcy of Dubai & the new city in the desert. Remember the man made palm tree resort in the Red Sea? The kicker for you, and me, and every USA taxpayer is at the end of the article. It's conversion of funds, in another setting it would be called a con, a ripoff. You are the victim. Thanks TARP! Thanks Citigroup! Thanks Dubai!
The view was, and apparently still is, that if Dubai gets in trouble, its oil-rich neighbors in Abu Dhabi will bail everyone out to avoid damage to their collective reputation and, by extension, the region's economy....That had to be what Citigroup, with its firsthand expertise with bailouts, must have been thinking when it lent $8 billion to Dubai last year. Oh, and here's an interesting fact: Citigroup made the loan to Dubai on Dec. 14, 2008. Take a look at the calendar -- that's after it received tens of billions in TARP funds. Citigroup's chairman, Win Bischoff, said at the time, "This is in line with our commitment to the U.A.E. market in general, and reflects our positive outlook on Dubai in particular." Good call. And what became of all those Shariah-compliant financial instruments that were the hot topic of that panel I attended? (more)