Dubai requesting 6-month "standstill" on paying its bills. (Fine. When I am allowed to do the same.)

[Bluebear]

DUBAI, United Arab Emirates – Just a year after the global downturn derailed Dubai's explosive growth, the city is now so swamped in debt that it's asking for a six-month reprieve on paying its bills — causing a drop on world markets Thursday and raising questions about Dubai's reputation as a magnet for international investment.

The fallout came swiftly and was felt globally after Wednesday statement that Dubai's main development engine, Dubai World, would ask creditors for a "standstill" on paying back its $60 billion debt until at least May. The company's real estate arm, Nakheel — whose projects include the palm-shaped island in the Gulf — shoulders the bulk of money due to banks, investment houses and outside development contractors.

http://news.yahoo.com/s/ap/ml_dubai_desperate_times

[AllentownJake]

1. Boom

[Bluebear]

2. ...goes the world economy.

[AllentownJake]

3. I knew something was going on when T-bill yields turned negative last week

Well at least, I know what that something was now.

[Subdivisions]

7. Hey AJ, do you think it's possible that the Fed is bankrupt? n/t

[A HERETIC I AM]

8. What does the Fed have to do with T-Bill rates? n/t

[AllentownJake]

10. Since it is a public auction nothing

Do they keep the ledgers for those or does Treasury?

Either way, this is great for the US Tax payer right now, our debt is cheap as hell.

Hope they are selling those 10 and 30 year bonds.

[A HERETIC I AM]

14. The Treasury Department has to know who owns what so they know who to ..

send the interest payments to, in the case of notes and bonds and who to send the redemption to in the case of bills.

Hope they are selling those 10 and 30 year bonds.

Absolutely they are. The most recent series of 10 & 30 year paper was issued on the 16th;

http://www.treasurydirect.gov/RI/OFNtebnd

They dropped the coupon on the 30 year a little while back from 4.5% to 4.375%. That is a good thing as this area is a historical low range going back several decades. The thing is, 30 year paper is the most expensive way to borrow money for the Treasury. Anything over 3.33% coupon means they are paying more than par value in interest payments during the life of the bond. ($33.33 a year per bond X 30 years = $1,000 in interest and at maturity you get your $1,000.00 back)

If Obama can do what Clinton was able to do and clean up the financial mess left by Bush, the Treasury can once again stop issuing 30 year paper, just as they did in Clinton's second term. Treasury began issuing 30 year bonds again in Bush's first term, after the government started spending like drunken sailors after 9/11.

[AllentownJake]

17. Thanks for that info

[AllentownJake]

9. Can they go broke?

I know if I controlled the money supply and my currency was the world reserve currency, it would be impossible for me to go broke.

Of course, they aren't happy about the idea of an audit.

[arcadian]

11. Best line from Star Trek: DS9

The Ferengi Quark upon visiting Earth in the 1950s: "You mean they irradiated their own planet? On purpose?" :rofl:

[virgogal]

4. Dubai's troubles. Schadenfreude!

[Bluebear]

5. OK, but this is going to have an impact worldwide, not just on Dubai

[Xicano]

6. "Fine. When I am allowed to do the same."

Remember what George Carlin said about "the big club?" You and I are not in the big club.

That man was so right on the money.

[Deja Q]

16. We aren't. Once he became famous, he got in.

Of course, using us to get in is what counts, you see.

:D

[SpiralHawk]

12. Aren't these the clowns the Republicons tried to give our US Ports to?

That 'deal' -- which real patriots stopped -- always struck me as yet more Republicon treason to America...

Now aren't we glad these financial 'genius' republicon cronies do not have control of America's ports...

[AllentownJake]

13. Yes and than it was sold to AIG

Not joking.

[SpiralHawk]

18. Nice work by the Republicons, as usual: FAIL

[Deja Q]

15. K & effing R

:yourock: