The meme going around now is that the Dubai debt thing is only the start of a wave of sovereign defaults, including Latvia and Greece, coming soon. While this could be the case, I actually see a lot more similarities between what the Bear Stearns blow up ultimately meant to the residential real estate market versus what the default of Dubai World could mean for the commercial real estate market.
While I make no predictions or forecasts on this site whatsoever, I would be remiss if I did not point out some of these similarities (see above chart).
Commercial real estate has long been thought of as 2010’s big meltdown and the proverbial “next shoe to drop”. Nowhere has the worship and commensurate overbuilding of commercial real estate been better exemplified than in the United Arab Emirates. At one point in 2005, it was estimated that 25% of all the cranes in the world were operating within the UAE.
Like California and South Florida came to represent the worst of the residential RE bubbles, the explosion in spending and financing for commercial RE has its international Ground Zero in Dubai. Everyone from the major banks to the private equity cabal to Donald Trump has a stake in this story.
We’ll see whether this story is “contained” or if it is just the harbinger of a re-marking of commercial RE portfolios around the world.
Full Disclosure: Nothing on this site should ever be construed as research, advice or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.
[…]although web sites we backlink to beneath are considerably not associated to ours, we really feel they’re truly really worth a go by means of, so have a look[…]
[…]we like to honor lots of other world wide web sites on the net, even if they arent linked to us, by linking to them. Below are some webpages really worth checking out[…]
I’m a New York City-based financial advisor at Ritholtz Wealth Management LLC. I help people invest and manage portfolios for them. For disclosure information please see here.
Subscribe & Reform
Get a Full Investor Curriculum: Join The Book List
Every month you'll receive 3-4 book suggestions--chosen by hand from more than 1,000 books. You'll also receive an extensive curriculum (books, articles, papers, videos) in PDF form right away.
adam and eve sex toys
[…]Here are a number of the web-sites we advocate for our visitors[…]
Young Money
[…]although web sites we backlink to beneath are considerably not associated to ours, we really feel they’re truly really worth a go by means of, so have a look[…]
rap
[…]that could be the end of this write-up. Here you will discover some websites that we assume youll appreciate, just click the links over[…]
pleasure kit
[…]check beneath, are some completely unrelated web-sites to ours, on the other hand, they are most trustworthy sources that we use[…]
Sex toy review
[…]The details mentioned inside the write-up are some of the most beneficial available […]
strap-on dildo
[…]we like to honor lots of other world wide web sites on the net, even if they arent linked to us, by linking to them. Below are some webpages really worth checking out[…]
huge dildo
[…]one of our visitors a short while ago advised the following website[…]
Business
[…]below youll come across the link to some sites that we consider it is best to visit[…]
Potholes
[…]we came across a cool site that you just may delight in. Take a look for those who want[…]
Free Music
[…]the time to study or visit the content or sites we’ve linked to beneath the[…]
Rap Beats
[…]we came across a cool website that you might enjoy. Take a look if you want[…]
Underscore
[…]The information and facts mentioned within the article are some of the most beneficial accessible […]
ebooks with resale rights
[…]The facts talked about inside the write-up are some of the most effective readily available […]
Peristaltic Pump
[…]below you will obtain the link to some web sites that we feel you should visit[…]
survival site
[…]The data mentioned in the post are a few of the best out there […]