Saturday, January 9, 2010

Dubai stiffs Japan

Uh oh. Who could have seen this coming?
A consortium of Japanese engineering companies building the Dubai Metro mass transit system is to embark on a “work slowdown” from today over delayed payments from the Dubai Government.

The dispute follows official admissions in Tokyo last month that Japanese companies outside the financial sector are cumulatively owed about $7.5 billion by the government of Dubai and a variety of state-affiliated businesses.
Remember, Dubai will be marked down 90% when it's all over. Meanwhile, rumor has it that China is Dubai x1000. Maybe 2010 is a good hunkerin'-down time? Just saying.

5 comments:

Dan from Madison said...

Chanos says what I (and you) have been thinking for a LONG time, that China is cooking the books. If that guy gets his timing right, he will make a LOT of money shorting China.

w said...

A nation-wide rail system for only 200 Billion dollars. That's impressive.

The LA to SF high speed line is estimated to cost 40 Billion.

This Blog Is Not Here said...

I don't know, forced relocation has worked really well in the past. Like, um, uh, ok, if anyone can make it work China will...

I love hearing that last one.

Noodles said...

Totally! Check this out if you haven't seen it already...
http://www.youtube.com/watch?v=pktM__i-8IQ&feature=related

Chris said...

Also a cover story about the China real estate bubble in Monday's Washington Post.

My instincts tell me that 2010 is not the year for China's downfall. It's either 2011 or 2012 in my opinion. I believe this because the real estate bubble is still growing.

It took about 18 months from the peak of the U.S. real estate bubble to the beginning of the U.S. recession. I believe this gap will be smaller for China (6-12 months) because most of the world has seen this horror flick before.