Last year as we prepared for Thanksgiving, the disturbing news reached us from Mumbai, India that a massacre of innocent individuals was taking place and it was focused on two very well-known international hotels, the Taj and the Oberoi, as well as the central train station and the Chabad House. The final human toll was in many ways incomprehensible and we know today that a Pakistan-based terrorist group, Lashkar-e-Taiba, was responsible for the attack.
This year as we were enjoying our Thanksgiving dinners with friends and family in the United States, we learned that Dubai World was calling for a six-month moratorium on debt payments. This morning the world equity markets are once again being roiled by this unsettling announcement. Abu Dhabi, who most assumed would bail out Dubai World again, remained quiet on the sidelines.
ai5000’s Editor-in-Chief Kip McDaniel saw this coming in his cover story, Dubai (S)Inc., in our premiere issue of the ai5000. I have linked to a copy of this article from six months ago and also his analysis of the unfolding events.
As we return to work on Monday, it is clear that the global markets will remain rattled while a settlement is negotiated with Dubai World’s lenders.