The Global Meltdown, Part II: Dubai
I'm sure this period in history will be analysed, disected, reassembled, disected, and re-analysed for centuries to come. Sadly, it comes down to greed, as well as a lack of honor, integrity, morals, ethics, and scrupples ... and poor prior planning ......
Seven BILLION people on this planet ... and none of the other govt's did any better, prior to, or during, the global meltdown for their citizens. It is possible the actions taken by the USA will see the USA out of this Recession at the forefront of the pack ... but it's a global economy now, so the other countries, that have done little to nothing, hoping to "ride the coattails" of the countries that did take action ... will be a drag on the global economy for a decade, or more to come.
The worst part is, the past and current, exportation of jobs, and TECHNOLOGY, from the USA to other countries ... the USA needed to create jobs here ... instead ... the gov't is saving the financial system while people are losing their jobs, and their homes ... and can't pay their bills. To me, creating and saving jobs, was the best path to a recovery AND SELF SUFFICIENCY. Seems that employed people will, and would, be able to feed their families, pay their bills ... and constructively contribute to society ... rather than be a drag on it ... thru no fault of their own.
Other countries have an unfair advantage over USA employers ... Our gov't has engineered a slew of taxes that other countries don't have ... China, has NO retirement system. No Social Security, No FUTA ... hence overseas companies can earn more per dollar ... than manufacturing the same product here. The USA needs to look at all the taxes, determine what percentage of producing any item(s) those taxes impact USA workers vs foreign workers, and either negotiate with other countries to start their OWN programs and taxes, OR institute a FAIR competition tax on imports until other countries do so ...
As to Dubai: the biggest exposure appears to be the EU ... somewhere between $80 - 85 billion, of which Dubai is asking for a delay on about 30 billion .... NOT a write off ... a delay! Hummmmm, given the SIZE of the daily markets, though it's NOT a small amount , it IS a manageable amount. that's certainly, "do-able"!
Keeping your focus on what's "manageable", is going to help your investing when the "big boys" reach the same conclusion.
Sorryl, I'll get off my "soap box" now, thanks for the response .. . and for listening to my " 2c" ..