Dubai World-Fiasco,Banks in a bind.
In Sanskrit, there is a saying “Mounam Sarvaartha Sadhagam”,general meaning being Silence is conducive for achievement in Life;special meaning is Silence is conducive to worldly wealth.
In Dubai , the ruling class maintained a discreet silence when people invested in Dubai World, thinking it has Royal Patronage(they are right for in Sheikdoms nothing will move with out the Sheikh’s participation) and came out the govt. has nothing to do with Dubai World when the bubble burst.
RBS had earlier been bailed out secretly by the UK govt.How these banks are going to come out of this mess is an open question.
Ultimately, the small investors are going to be hit as usual.
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