Folks always remember the one fundamental economic priciple you learnt in high school. All economic growth patterns are cyclical in nature. This has been proved time and time again in different economies in different countries and with different assets. Just look at:
1) Dot Com
2) Global Real estate - particularly US, UK & Europe
3) Oil Prices
4) Gold prices (yes their high now but look more carefully - pre 1980's)
5) Bonds, equities you name it ....
Prices only go so far until investors realise the Emperor really isn't wearing any clothes and then the bubble bursts. People thought oil would go to 200USD per barrel... it only peaked in line with the peak in other major global economies. Now that growth in USA, India and China is looking curtailed so demand has dropped along with the price. Funny how many soverign wealth funds are actually insuring against the price of oil dropping below 70USD per barrel. Now why would they do that do you think?
The point is that the Dubai economy will tighten in time as inflation becomes rampant and the Dubai commercial banks realise that they too have been rather cavalier in their lending policy. Property prices will correct this is inevitable and i'll state my profit share (like we'll get any this year, NOT) on this. Its just a question of time. Maybe its time to realise some of those gains in property we've made.....
Dubai may have some insulation but rest assured the correction will come. Maybe not an all out slump but certainly a slowing of growth. As some of the other points have made above this is aleady starting to show.
Thought for the day:
Greed through excessive risk has killed the banking system in the USA. Hedge funds, short selling they've all contributed to it. If we learn to be less gready and use our heads we'll all be worth more.
Right that's enough b*ll***s for one day,LOL
