Friday, November 27, 2009

Dubai Insider Trading Advantage -- Manufacturing Black Swans

How are Donald Trump and Dubai the same? They build beautiful stuff and then re-negotiate their debt. Dubai may be doing what most real estate developers would do in a flash; stick it to their financiers and get better terms.

Except the world sees it in different terms. This is supposed to be one of the richest cities in one of the richests parts of the world. Impoverished oil sheikhs do not exist or so we need to think.

Unlike Donald Trump, Sheikh Zayed bin Sultan Al Nahyan still has oil and can write a cheque. Donald Trump has a much better sense of location and despite his outrageous prices sells out his projects. Sheikh Zayed not so good on the location thing.

The news comes out during American Thanksgiving and freaks out European markets. The Black Swan event is the perfect cover for unscrupulous insider trading activity. They knew what this news was going to do.