Dubai

Just posting this article because it is more comic than anything else.

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5110710/Dubais-rulers-say-success-of-the-emirate-is-no-mirage.html

“Mr Al-Shaikh also takes comfort in Dubai’s history. “In this city we have been blessed by great vision and leadership; generation after generation, […]”

Generation after generation??? ROTFLMAO… the concept of hyperbole being lost on this dim wit the only thing I can say is that I just found what the proverbial village has been missing. But wait! It gets better:

“Mr Al-Shaikh insists that major infrastructure projects will be completed – thanks to a planned 42pc increase in government spending, that comes despite Dubai being forced to turn to the UAE government for a $10bn loan and a recent downgrade of the credit ratings of companies linked to the Dubai government.

Fahed Fanek in Jordan will uphold this as panacea to all economic and social ills…

“Nothing is being placed on the back-burner. We think this is crucial to ensure that we are one of the first cities rebounds in the region. Opening up to the rest of the world was a decision we took many years ago. We will never be a closed economy again.

Oh! So now Dubai is an economy?

We remain focused on what happens after the crisis.” Restoring confidence to Dubai’s battered property market is one of the key priorities for Mr Al-Shaikh.

Absolutely. Let’s restore confidence in that sector of the economy that has been overinflated, over estimated, over built out, over financed and over peddled because that will lead us out of this deflationary jam… :))

A recent Reuters poll of developers and agents suggested that prices could fall a further 50pc this year, although  Mr Al-Shaikh insists that reports of oversupply are exaggerated. With 70pc of supply controlled by government affiliated companies, he argues that “we can tone down the supply for this year, next year and so on”.

And here is the blatant admission that Dubai is not an economy. What Dubai is, if it is anything, it is the household of a rich, petulant, whimsical, spoiled brat, hell bent on sorrounding himself with grandiose toys. As it is now plain to see (except maybe to the spoiled child) is that although toys may be fun, they do not secure the future of a nation.

He also claims that reports about the number of units being developed are wide of the mark. “We are on top of supply. International banks estimated that the number of units that were delivered in 2008 would be in the range of 60,000 – 70,000. When you look at the reality only around 28,000 units were delivered in 2008.

That’s right mister. Since “government” controls the supply, you can modulate what you think your output should be. Other than this being, once again, blatant admission of the absence of an economy and a functioning market, this should also tell you that the reason you’ve only delivered 28000 units is because you are a victim of deflation you nitwit.

We expect more or less similar numbers in 2009.”  The Real Estate Regulatory Authority is also monitoring the progress of individual private developments as well as the financial health of private developers “to ensure that we don’t have half finished buildings in the City”. It has focused on schemes that have been sold “off-plan” to investors. “Whatever has been started will be finished. Wherever there is a commitment it has to be fulfilled. There is no question about that. It is a matter of credibility to us,” says Mr Al-Shaikh.

Here is my prediction. Dubai will be a ghost town for a good many years before any semblance of activity will pick up again there. Take me to task five years or even ten years from now. Anyway. What this is, is more government intervention. As if 30 years of misguided childish intervention had not created a big enough problem.

But the piece that really cracked me up is the paragraph (because that’s all you really need) grandly titled: “History of Dubai”. Check this out:

” A HISTORY OF DUBAI

In 1833 the Bani Yas tribe, led by the Maktoum Family, settled at the mouth of the Bur Dubai creek. Dubai soon became a centre for fishing, pearling and sea trade and by the turn of the 20th century was a successful port. By the 1930s Dubai’s population was nearly 20,000, a quarter of whom were expatriates.

Oil was discovered in 1966, spurring infrastructure development and modernisation. The 1980s and early 1990s saw its emergence as a major tourist destination.”

Purely from the point of view of decency, I wouldn’t have even bothered highlighting the “history” of Dubai. But since they have, I’ll refer you to the nitwit that in previous paragraph mentioned something about “generation after generation” of enlightened leadership. BWWWWAAAAAAHHHHAAAAHHHAAAHHHAAAAHHHHH!!

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