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alstry (36.32)

Will American be like Dubai???

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June 14, 2009 – Comments (12)

TMFRhino wrote a great piece titled Dubai, How Bad Is It?  which included the following:

The article paints Dubai as the collapsed poster child of the credit bubble.

Its airport: riddled with abandoned cars of fleeing foreigners who fear imprisonment from debt loads accumulated through speculative real estate transactions and job losses.

Its malls: empty.

Its real estate market: collapsed and in a continued downward spiral.

The government: hiding the extent of the problem and eliminating transparency.

Bleak stuff.

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=212542&t=01008488005900316388

If you think about it, are we really any different???????

This from Calculated Risk:

A recent book, “Retrofitting Suburbia,” by Ellen Dunham-Jones and June Williamson, notes that in 1986, the United States had about 15 square feet of retail space per person in shopping centers. That was already a world-leading figure, but by 2003 it had increased by a third, to 20 square feet. The next countries on the list are Canada (13 square feet per person) and Australia (6.5 square feet); the highest figure in Europe is in Sweden, with 3 square feet per person.

Note that the article above stated there were 20 square feet of retail space per person in shopping centers in 2003 - and that was before the more recent building boom.

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=212542&t=01008488005900316388

Just the building out of this space created an INCREDIBLE number of jobs, purchase of building materials, profits for corporations, and tax revenues for government over the past 20 years. 

Much of which was dependent on people simply borrowing money they didn't have and advancing generations of purchases into a few years...... 

Now we are forced to deal with the aftermath..... vacant malls across the nation, massive job losses and wage cuts, thousands of businesses going bankrupt, and tax dollars to government evaporating.

In the interim we built up a HUGE government infastructure that we can no  longer afford....a Trillion dollar defense budget, a multi trillion dollar welfare budget, and expense accounts for our politicans that would make most monarchs jealous......

Unlike Dubai, whose citizens DON'T pay much in taxes, the citizens of America are breaking their backs simply to pay for an unsustainable government infastructure.

At practically every level....local, state, and federal.....our government is running out of money because we are not giving as much anymore......and soon politicians will need to get more from you to keep on keeping on.......the only problem is you don't have enough to give them.......even if they took all you had........

The BIG question NOW is what are they going to do now that we don't have enough to give??????????????????????????  Could a WAR be a possible good way to keep us busy and their lifestyle intact?????

Prepare.

12 Comments – Post Your Own

#1) On June 14, 2009 at 7:03 PM, checklist34 (99.73) wrote:

no way man, we have FAR better pastries.  with pie this good, we'll never fail.  :)

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#2) On June 14, 2009 at 7:04 PM, ttboydxb (28.90) wrote:

Hey Alstry,

 

typing this from Dubai, (work here, at the airport) just got a 5% raise as well!  Don't believe eberything you read, things here are fine, and the people who have lost $$ in real estate were 90% Iranian and Russian speculators.  Reading this has given me a LOT of clarity.  I've been readin all this doom and gloom about the US, and the markets, but if this is how you're describing Dubai (where everything is fine, just slowed down a bit) then  wow, thanks!  Slowly getting bullish on it all, thanks!

 

p.s. no tax is THE BEST!!! 

 

 

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#3) On June 14, 2009 at 7:10 PM, alstry (36.32) wrote:

Sorry for the Title Goof......it should read Will AMERICA be like Dubai.

The problem is simple......our government has grown too large for its citizens to sustain......Trillions of dollars too large.....more than the total GDP of China or the annual oil sales of the entire world.

Basically....in order for politicians to keep their jobs.....they need to take all you have and more.......

Now the question is what are they going to force you to do when you can't give enough??????  Do we need to get the more from someplace else????

Are you willing to sacrifice your life or your children's life so their children can go to private schools????

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#4) On June 14, 2009 at 7:12 PM, alstry (36.32) wrote:

tt,

As I implied above.....Dubai is in much better shape than we are.....at least the citizens of Dubai.

The citizens of the United States.....that is a different analysis.

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#5) On June 14, 2009 at 7:20 PM, checklist34 (99.73) wrote:

ttboy, thanks for the input.  :)

And I shoudl confess, since you are there, that I've never had pie in Dubai, I'm just assuming we have better pastry here.  We sure have better pastry than Asia, holy!

(pie is sort of a polite joke I rib Alstry with when he gets really doom and gloom on us)

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#6) On June 14, 2009 at 7:27 PM, NOTvuffett (< 20) wrote:

What do they have in Dubai? McDonald's fried pies? lol

 

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#7) On June 14, 2009 at 8:30 PM, ttboydxb (28.90) wrote:

 They do have McDonalds fried pies indeed!!  You're right Alstry, things are pretty good out here, and I rather be in Dubai right now then Europe, Canada and the US.  (Might prefer Singapore only) 

 

I guess my point is that if you only went by the kinds of articles that came out about Dubai, you would think this was one big concentration camp, and that there are about 12 western expats left!  So it makes me wonder how much creedence we should put in a lot of the media reports (or CAPS blogs) we get about how bad the US is??  Yes it's bad, but what I have learned from being here is how much more CONNECTED the WHOLE WORLD is then I ever thought!!!  Yup, the US has had, and is having a hard time, but so did EVERYWHERE ELSE.  From a Beaudoin herder in Saudi, to a rice farmer in Vietnam.  

 

WE all felt what happened there.  I guess the question is does the rest of the world recover and Europe and North America stay behind??

 

If I knew that I wouldn't be just a lowly CAPS member....

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#8) On June 14, 2009 at 8:33 PM, russiangambit (29.40) wrote:

>What do they have in Dubai? McDonald's fried pies? lol

Baklava, I would assume. And it is up to a discussion whether an apple pie beats it.

Dubai can't be as bad as the US, it is tax free after all. What is not to like? Though the building boom does seem excessive. Perhaps, rising oil will save them.

 

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#9) On June 14, 2009 at 8:57 PM, abitare (49.76) wrote:

Lost Vegas is Dubai with hotter tempatures and less oil/money

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#10) On June 14, 2009 at 10:46 PM, ozzfan1317 (78.55) wrote:

America has the third most oil in the world.  We have the best technology and one of the best militarys. We are from in danger of becoming Dubai regardless of how much our economy slows.

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#11) On June 14, 2009 at 10:49 PM, ozzfan1317 (78.55) wrote:

far from being in danger of it I meant

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#12) On June 14, 2009 at 10:51 PM, usmilitiadude (32.14) wrote:

Sticky pecan cinnamon rolls made by grandma are the best.  

 Harry Dent was interviewed on the local talk station today. He says:

 1. More deleveraging/deflation. 2. Government can't stop continued economic collapse. 3. Prime loans will fail.  Baby boomers spending less to prepare for retirement.

 

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