I heard about this shite a while ago, the kind of privilege info that I can get my hands to in my industry. But I thought blogging about it would not be a wise move as it is after all, P&C typed of information. But now that it is out in the open, I guess we can all talk about it.
Did you guys read the big news last Friday? More were elaborated today. I am referring to sub-prime ala middle-east flavour.
Dubai World, the flagship investment arm of Dubai with stakes in Nakheel, the company responsible for the construction of the palm-tree-like artificial residential islands (Palm Islands), is unable to pay off its debt worth USD60b.
Worse, it appears that Dubai seems to be saying I-am-sorry-thank-you-bye-bye, metaphorically speaking.
So, USD60,000,000,000 gone. Well, technically, not gone. Just that it has gone from pocket A to pocket B and pocket A is going to cry, get drunk and dump down buildings while pocket B will enjoy all the bliss.
Anyone who has got active thinking juice should ponder on a few things… If Dubai, said to be a damn-f*cking rich place can’t pay USD60b, what does that tell you? Do you think they are really rich? Everyone is saying that the economy has recovered and this, which has been kept under the carpet for a while creeps out, what does that tell you? Don’t you think there are a lot more shite hidden behind the multitude of good news reported in the press?
Of course, this will not affect the taste of your nasi-lemak, bak-kut-teh and char-kuey-teow so you can choose not to bother about it.
1 year ago… Generation condemnation
2 years ago… Yes, we do believe
Did you guys read the big news last Friday? More were elaborated today. I am referring to sub-prime ala middle-east flavour.
Dubai World, the flagship investment arm of Dubai with stakes in Nakheel, the company responsible for the construction of the palm-tree-like artificial residential islands (Palm Islands), is unable to pay off its debt worth USD60b.
Worse, it appears that Dubai seems to be saying I-am-sorry-thank-you-bye-bye, metaphorically speaking.
So, USD60,000,000,000 gone. Well, technically, not gone. Just that it has gone from pocket A to pocket B and pocket A is going to cry, get drunk and dump down buildings while pocket B will enjoy all the bliss.
Anyone who has got active thinking juice should ponder on a few things… If Dubai, said to be a damn-f*cking rich place can’t pay USD60b, what does that tell you? Do you think they are really rich? Everyone is saying that the economy has recovered and this, which has been kept under the carpet for a while creeps out, what does that tell you? Don’t you think there are a lot more shite hidden behind the multitude of good news reported in the press?
Of course, this will not affect the taste of your nasi-lemak, bak-kut-teh and char-kuey-teow so you can choose not to bother about it.
1 year ago… Generation condemnation
2 years ago… Yes, we do believe
33 comments:
Contruction/Real Estate/ Property 101 is very simple. Build or buy property in cities/countries that is blardy over populated with plenty of work opportunities. Simple, irregardless of what price, as long as you can afford.
Look at Spore, they have blardy low birth rate, so what do they do, they import professionals from Malaysia who can contribute to their economy, aka work to bring in money and stay n buy property to keep their properties price sky high. Same same as Australia. But it is a lot more work than just importing ppl, the political/social/environmental issue must be properly handle. Kudos to these 2 countries, somthing our politician refuse to acknowledge.
Dubai population is only 1.5 million and 80% are expat, and probably 90% of the 80% expat are low pay construction worker. So who are buying all these properties? And why are they buying? Definitely not to stay, live n work there.
Anyway dont worry la USD60B is small amt la considering US can print thrillions.
On a positive note, Malaysian should not worry abt this Dubai subprime problem. Malaysia economy has stagnated for the last 10 yrs, whats to worry??? We already hv 10 yrs of practise and preparation for the worse to come....don worry larrrrr
Referring to your previous post... thanks for sharing that article. I'm still a bit speechless as to what to make of it, but it is very enlightening indeed.
They wanted to be extravagant but failed wonderfully. I transitted there when I visited gobble-gobble-land last year. I did not foresee how it could keep it up. They were living beyond their means.
Zewt: Privileged information? My foot!! Pls stop worshipping yourself. You'll gonna get disllusioned and depressed someday if you keep doing that. Which planet did you come from? The signs were already out there more than 6 months ago. It had been forecasted by several economists after the global financial crisis. Let me give you another privileged infor. Malaysia will be affected too regardless of what the spin masters say. Don't ask me where I got this infor...it's privileged!!
thanks for sharing the other article by Johann Hari. helped me a lot understanding the current situation we are in.
yeah one of my hk friends cursing dubai.... he has invested so much in it... anyway the market there is bad now...
zewt,
you bloody dumb...
they dont want to bail out the company...not that they dont have the funds...
yeah, dubai world is a conglomerate....a business entity....UAE is still filthy rich
$60 billion is loose change....
Zewt, I'm more afraid, if something like that happens in China. Then we're really screwed :(
@anti-zewt: I love your comments :P
What I know is, Angelina Jolie and Brad Pitt, probably Oprah.. also own a place at the Palm... so it's their money gone. Leave my nasi lemak alone!
@MKL: i don't think this would happen to the Chinese. Knowing the Chinese culture, we are too risk averse type of people. Though I'm not a full fledge Chinese, but knowing us, we are too risk averse to blow money away like that. :P
China is still one of the highest savings nation in the world.
@anti-zewt:
i dont think that zewt is just self praising. In his line of work, he probably is privy to certain information that he's not disclosing exactly..
right, zewt?
and spore and aussie don't have to import ppl.. ppl are MORE than willing to go to their country and why not??
Msia is a good example... nuff said
@Pavlova, it can happen to anyone. Dubai was so long the no 1 developing city, who would've expect something like that? When it comes to money, it doesn't matter whether you're American, Arab or Chinese. Money doesn't care about heritage or cultural backgrounds. There was a crisis in Asia in 1997, remember?
they progressed too fast and spend too much. that's their downfall!
Why look so far, mate? Malaysia has been up to some action too:
• Bumiputra Malaysia Finance (BMF) swindle: US$1 billion.
• Bank Negara foreign-exchange fiasco: RM20 billion.
• Extra BMF bailouts: US$600 million.
• Perwaja Steel bankruptcy: US$800 million.
• Maminco tin market manipulation: US$500 million.
• Bank Islam non-performing loans scam: RM2.2 billion.
• Highway concessionaire bailouts: RM38.5 billion.
• Mirzan Mahathir's MISC rescue: RM600 million.
• Port Klang Free Zone scandal: RM12 billion.
There goes my hard-earned taxpayer money. Your reasons for going abroad are suddenly looking very attractive indeed, Zewt.
Crankster : Do you noe many Malaysian do not noe abt the issue that u just stated? I hv gatherings with my primary skoolmates on a quarterly basis, some are engineers, top insurance sales man etc etc....and they are totally ignorant of Malaysia's political/social problems. They actually believe life is good. Whenever we talk abt politics, some just yawn and wanted to go home sleep, they prefer to talk abt movies 2012/twilight/brad pitt n angelina jolie adopting another godforsaken timbuktu child, britney having another sex video leak,tiger wood cheating on his wife,edison chen's conquest....all kinds of nonsense they know except the things that really matter. I'm sure we all have frens like tat.....which makes it even more sad.....
Yes, this has provided some detailed discussion and opinion here in the UK.
The fundamental mistake, it seems, was the Dubai development corp. placed total reliance on and in the construction industry and the market place for those constructions.
As we know, the banking crisis hit, there is a global recession, the market is not buying property, nor is it renting in exotic locations at high rents. Business in this sector is relatively flat.
Then there are the debtors who placed too much reliance on the worth and stability of those who seemed to be backing dubai. The international money markets, the stock exchanges, have wobbled, though as yet, it is not clear why they have not lurched and become hysterical.
The next instalment of this story is awaited.
PS That should read ' debtors and the lenders who placed too much reliance...'
InjusticeSistem,
Your friends are smart people. They yawn when u talk about politics because they know its just talk. No action. Besides, they are doing well...they drive big cars(i presume) and are fairly comfortable so they view malaysia as problem free. That is the human mentality. Ask Francis Yeoh if he wants to migrate? haha.
Knowing about the problems are one thing. Doing something about it is another. With all the shit going on and with every 18 year old oppossing the government because its in "vogue", talking about new moon, britney spears, and jessica alba may be an excellent idea.
Big Bertha: Hello there
1.We r in our 30s, so i really duno why they r stl interested in talking abt britney n wat not.
2. Most of their income are affected,come on who is not?
3. Yes except 2 of them drive big cars, cos they are cronies of AMNO, after many sub sub sub sub contract. (Phew...imagine the margin when u are at the 1st sub)
4. The rest are seriously ignorant, they don even noe who is RPK/Bala,and a few of them hv da guts to tell me dey hv never voted in their life,alrady in their 30s,can u bliv tat?! These ppl r not da lowly educated ppl, 1 of da guy WHO HAVE NOT REGISTER TO VOTE is an IR Civil Engineer, basically a civil engineer who can rubber stamp his drawing etc etc tat kinda thg.
5. Francis Yeoh was my No.1 idol back then until i realise he is 1 big fcuking crony. (yeah i was ignorant too, but i did wake up)
6. Yeah u r right, bitching n whining don change a thing, perhaps i too shud change country instead.After all, 55% of the voters support racism/NEP/AP/calling pendatang balik cina/balik india
Eh!!! I somehow commented on the wrong post...heh heh...only 31 and already my eyesight failing! The one about the haters was supposed to be here :P
InjusticeSystem, I have friends just like yours too. Life is such - there are smart people and there are stupid ones on this planet.
You'd think that being able to achieve their "lofty" positions in life, they would be smart. But no. I guess they live for the moment.
Big Bertha, the problem with life is that if you're doing well, have a great job, earn heaps of money, have brilliant kids, a beautiful wife...
... sometimes a lowlife who should have been caught and put into jail for previous crimes (but isn't because the cops are too busy putting up roadblocks for illegal demonstrations) comes to your house, botches up the robbery and kills your family instead before running off.
yeah, and sometimes you just die from a road accident...or heart attack...or cancer....
its ok that millions die from diseases and hunger but its worst that a few thousand die from physco robbers....
agree they are not rich
A smile from SJ =)
InjusticeSystem - yeah, and that is how the price of property in kiara appreciates. the expats buy and we are forced to pay a premium there. 60b became 80b. hahahaha... yeah, we are so deep down, it cant get worse :P as for your friends, i have friends who are like that too. all becos they are rich and they dont care about other things. when life is good... realy world doesnt matter.
Terra Shield - always my pleasure.
pinknpurplelizard - they wont die though, the govt will bail them out. it disgust me.
anti-zewt - i shall not elaborate. and i dont need to worship myself, you're here everypost to worship me.
Mohamad Hilman bin Nordin - no worries mate... we all need to be enlightened all the time.
fufu - and market picked up today... all about sentiments ler
anon @ 2/12 7.11pm - dont overread into thing, i never mention anything about bail out in the article.
anon @ 2/12 7.13pm - only abu dhabi is rich though, dubai is living on debts, much like america. i am sure there are more to the 60b.
MKL - oh yeah man... that is something we hope will never happen. this part of the world will die.
gina - hahaha... nasi lemak plenty still. dont worry.
pavlova - china will be able to hide it well if it happens, too many conmen haha!
goingkookies - well, just for you... the ICBU initiative by the govt hit a snag cos middle eastern assets were going bust a while ago. that is something not many ppl know... shhh... but of cos, maybe anti-zewt knows more since he also has access to info. wanna know more? e-mail me hahaha...
eiling lim - they are defying nature.
Crankster - sigh... dont remind me. we should be much richer.
ZACL - the problem is, they are so big the govt is not going to fall. and the banks also would not want them to fall. everyone is afraid of the chain effect. 60b may be a small figure in the eyes of a the global economy, but it is till significant in the eyes of a taxpayer.
Big Bertha - i guess we just need to vote, that's all.
Sabrina - yup... u meant to talk about the hater eh? :P
SJ - :)
I read about Dubai last week and was quite taken aback. This oil-rich nation has the funds but no bail-out action yet.
Houses at The Palm are ready but no buyers and property has dropped to 60% of its original value. Beckham has a unit there too so has Gary Neville, I think.
Expats are getting out of the country fast leaving behind their expensive cars and whatnot... and debts. The debt prison is for real in that country so who wants to stay behind to experience that.
Expat labourers have not been paid for six months or more. Sad.
Construction is still going on though at the world's tallest building, the Burj Dubai.
When news first broke out, US share market was affected for a couple of days but has since normalised somewhat. When something like this happens, every economy in the world will be affected to a certain degree. And every country has its own set of problems in addition, Malaysia included. I just think it's a waste of time ranting bitterly about the worms. There's always the so-called 'greener pasture' out there if one so chooses - but does one really want to do it or maybe dare to take the plunge? There lies the challenge..
Good mature exchange here.
It's like in the neighborhood. We sometimes think that those who own lots of cars, big houses and business establishments are really very rich people. But truth is, they're sitting on debt, they acquired most of their possessions thru credit.
So if they can't (and don't) pay such a huge debt...it means they're really rich. Rich in debt. ^^
HappySurfer - they said that if you go to the airport, you can get free cars... becos ppl just leave their cars at the airport when they leave the country. whether or not you pay off the loan is irrelevant. that is truly wastage at its maximum. The world economy will hold strong, becos money is just paper...
Melisa - well said my friend... debt is the reasons why some ppl are rich.
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