By John Galt
May 16, 2011
For once the FDIC isn’t behind a bank failure and seizure. Of course for them to be involved in actions in Dubai would be interesting although not shocking. Dubai Bank which is part of the troubled Dubai Holdings along with Emaar Properties, another troubled concern. While the United States sits in blissful ignorance of what is happening overseas as these institutions begin to fail as the lack of cash flow from their U.S. and European holdings starts to impact their viability as ongoing institutions, the pool of funds to buy American will dwindle rapidly as the liquidity worldwide shifts from the high risk areas like our country and most of Europe.
If the ruler of Dubai can not even keep his bank solvent and operating properly, what does that tell you about those financial institutions in Bahrain, Oman, and other Arab countries which have had a problem with protests and violence? No wonder the Emirates have sought to create a private military arm, it would appear they are going to need them as their countries endure the unrest from a financial collapse and a weak ally in Washington, D.C.
Read the rest of the story here at TheNational from Abu Dhabi.