Ironic how a little over a year ago oil was $147/ barrel. Back then every aviator I know in the Gulf (and I know a few) would brag about their great fortunes as a result fo the Arab World's new wealth.
Meantime, those same govenments (Saudi, Emirates, Kuwait et, al) were warned time and again to bring oil down (many employed the speculators that forced oil higher) or they risk severly undermining the world economy... which as we all know is now what happened. Now all Arab debt is being brought to question.
I have no sympathy for the investors, caveat emptor. Nor do I have any concern for the governments whose arrogance acted as the catalyst to bring this whole mess about.
I don't believe the rulers will learn much from this either. When a kid can have his parents bail out his poor financial decisions, he'll never learn. His spending habits remain more or less unchanged. Same goes for Dubai. AD has been bailing them out time and again. Why wouldn't they expect yet another bailout, just as Lehman Bros arrogance that the US Gov't would do the same for them, ala Bear Sterns and AIG?
Read about Shumpeter: "Creative Destruction." While not excactly the same here, IMO, it's basic premise must be allowed to occur in order to allow markets to efficiently become more transparent. So long as bailouts are provided, very few learn any lessons. Corruption and fiscal sloppiness continue. Dubai is no exception.