Comments on: Dubai’s disabused creditors http://blogs.reuters.com/felix-salmon/2009/11/27/dubais-disabused-creditors/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Ken Houghton http://blogs.reuters.com/felix-salmon/2009/11/27/dubais-disabused-creditors/comment-page-1/#comment-9307 Sun, 29 Nov 2009 20:35:57 +0000 http://blogs.reuters.com/felix-salmon/2009/11/27/dubais-disabused-creditors/#comment-9307 The biggest problem with Roubini’s “W” is the assumption of the fourth leg.As Dr. Black noted, if I’m paying an interest rate that assumes a large chance of default, my willingness to default on that loan sooner than other financing should be assumed. (Brad DeLong keeps trying to argue against this; it’s roughly equivalent to Eugene Fama arguing that his EMH is not to blame for all of the structures that have been built on it [see P. Triana in the FT.)

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By: daniel http://blogs.reuters.com/felix-salmon/2009/11/27/dubais-disabused-creditors/comment-page-1/#comment-9306 Sun, 29 Nov 2009 18:39:08 +0000 http://blogs.reuters.com/felix-salmon/2009/11/27/dubais-disabused-creditors/#comment-9306 remember the days you say Ecuador idiot default hahahha

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By: John McLeod http://blogs.reuters.com/felix-salmon/2009/11/27/dubais-disabused-creditors/comment-page-1/#comment-9280 Fri, 27 Nov 2009 23:45:59 +0000 http://blogs.reuters.com/felix-salmon/2009/11/27/dubais-disabused-creditors/#comment-9280 So we’ve got an LSE biggie telling us that “Property companies don’t fall into the systemically important category.”Sorry, but I’m getting flashbacks to March ’07 when Susan Bies was running around describing the subprime market as a splinter off a sliver of a generally sound RE world. Looks like Nouriel’s gonna get that 3rd stroke of his “W” for Xmas.

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By: tas http://blogs.reuters.com/felix-salmon/2009/11/27/dubais-disabused-creditors/comment-page-1/#comment-9278 Fri, 27 Nov 2009 22:10:05 +0000 http://blogs.reuters.com/felix-salmon/2009/11/27/dubais-disabused-creditors/#comment-9278 Isn’t this the company the Bush Adm. wanted to let take over a number of ports here in the U.S.?

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By: Guambat http://blogs.reuters.com/felix-salmon/2009/11/27/dubais-disabused-creditors/comment-page-1/#comment-9267 Fri, 27 Nov 2009 17:47:39 +0000 http://blogs.reuters.com/felix-salmon/2009/11/27/dubais-disabused-creditors/#comment-9267 “But they felt sure the emirate would make good on publicly traded instruments””If Dubai World’s bondholders really took solace in the fact that they held bonds rather than loans, they thoroughly deserve a large hit in the wallet.”Perhaps the issue is neither bond nor loan (debt), but sukuk (equity), all three “publicly traded instruments”. But no one knows how sukuk would be handled by a default, especially bankruptcy. And THEN things begin to spill over into debt issues as the ripple effect takes hold.http://guambatstew.blogspot.com/200 9/11/on-inconvenience-of-principal.html

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