National Debt Clock

Saturday, November 28, 2009

Dubai debt crisis: Now British Banks Face Fresh Crisis After Investing Billions

http://www.dailymail.co.uk/news/article-1231320/Dubai-debt-crisis-Fears-second-economic-crash-global-stock-markets-tumble.html

British banks were teetering on the brink of a fresh meltdown today after it emerged they had invested heavily in crisis-hit Dubai.

An $80billion debt default in the emirate has already reawakened the spectre of a global 'double dip' - that the first shoots of recovery could be wiped out by a second wave of recession.

Dubai's debt problems are a hangover from a property bubble that imploded after the financial crisis derailed its plans to become a magnet for tourists and a regional hub for everything from shipping to entertainment.

Banks' exposure to a Dubai default pales in comparison to the $2.8 trillion in writedowns the International Monetary Fund estimates U.S. and European lenders will have to make between 2007 and 2010 as a result of the credit crisis.

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