Dubai World in A World Of Hurt

Dubai World, owned by the Dubai government has requested a delay in payment of around $35 billion of debt. This comes as no great surprise to us, as we have been discussing the eminent collapse of Dubai for some time now. but appears to have been a shock to the currency markets and banks, which is odd considering CitiBank loaned $8 billion of tax payer money to Dubai in December 2008, shortly after a bailout, and the Abu Dhabi government was forced to loan Dubai $10 billion back in February of this year, buying half of a $20 billion bond issue.

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