What’s up with Dubai? I have been reading a lot about the financial crisis over the last couple of weeks. Surprise: it’s not that interesting or even particularly complicated. But yesterday I heard someone mention that India has been experiencing a relatively small slowdown, on account of not being nearly as leveraged in the banking/speculation domain. If the USA has been living large off irrational exuberance, and Iceland has been living X-Large … well, I couldn’t help but think of Dubai. Wouldn’t their completely absurd growth over the last five years or so be well explained by their XX-Large dose of the medicine of confidence-leveraging. And if that were so, they’d be going into an extra-steep nosedive right about now, right? Yep (via).
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